Lavasa Corp to invest Rs2,200-2,300 cr in FY11

Lavasa Corp to invest Rs2,200-2,300 cr in FY11

Mumbai: Lavasa Corporation, a unit of Hindustan Construction Company Ltd, will spend Rs2,200-2,300 Crore as capital expenditure in its city project spread over 20,000 acres near Pune, a senior official said on Wednesday.

“Capital employed in Lavasa during this financial year will be Rs2,200-2,300 crores," Rajgopal Nogja, president, Lavasa Corp, told reporters on the sidelines of a conference.

Out of the total capex, Rs1,500 crore will be from internal accruals, he added.

Till date, total investment in the project is about Rs4,000 crore, out of which Lavasa Corp has invested close to Rs2,500 crore, while the rest came from various sources, Nogja said.

“Now we are looking at accelerating the development...we require additional funding."

Lavasa is planning to raise Rs2,000 crore via IPO during FY11, group officials told Reuters earlier.

City services

Lavasa Corp said on Wednesday that it had roped in networking equipment maker Cisco in its joint venture (JV) with Wipro to provide e-governance related services to the city of Lavasa.

“They (the JV) would provide Rs450 crores worth services to them (Lavasa city)," Ajit Gulabchand, chairman, Lavasa Corp, told reporters.

However, Gulabchand declined to give details of investment or equity stake held by the three partners in the joint venture — My City Technology Ltd. He also declined to give the exact timing of the proposed IPO.