New Delhi: Parsvnath Developers Ltd plans to invest about Rs37,000 crore in the development of 15 Special Economic Zones (SEZs) at various locations in the country. This is part of the company’s plans to diversify into other emerging business segments such as SEZ development, hospitality and retail.
So far, four SEZ projects of the company have been approved by the government, nine have received in-principle approval and four projects are still under consideration.
“Nine SEZs have been given in-principle approval and we hope to start work on these projects soon. We are waiting for the government to come out with a clear SEZ policy to go ahead with our plans,” said Ashim Gandhi, chief operating officer.
The SEZs will come up in 15 locations, in states including Tamil Nadu, Andhra Pradesh, Haryana, Uttar Pradesh, Maharashtra and Rajasthan.
While the SEZ in Tamil Nadu would be a multi-product zone, the rest would be a mix of IT, food processing, gems and jewellery, automotive and bio-technology zones, the company said.
Parsvnath has acquired land for all the projects including the SEZs which are awaiting government approval.
The company has invested Rs5,550 crore in acquiring land rights. This constitutes 15% of its proposed investment in SEZs. Parsvnath is also well within the ceiling imposed by the government last week, under which the maximum size of an SEZ should not exceed 5,000 hectares.
The company is now in talks with other companies to set up operations within the SEZs. However, no deal has been finalized yet.
“We are in talks with some companies. But we are waiting for the project to be ready to close the deals. We feel that once the SEZs are ready, we will be able to get a better price,” Gandhi said.
For the nine months ended 31 December 2006, Parsvnath recorded a revenue of Rs848.7 crore and a net profit of Rs139.3 crore.