Unitech to invest Rs2,000 cr in new projects this fiscal

Unitech to invest Rs2,000 cr in new projects this fiscal

New Delhi: Real estate major Unitech on Wednesday said it will invest Rs2,000 crore this fiscal -- 33% more than last year -- in construction of new projects, mostly housing, across the country.

The announcement comes a day after the Reserve Bank of India (RBI) increased the short-term lending rate which may make home loans costlier by up to 1 percentage point.

Unitech has also fixed a target to achieve a 20% growth in sales booking to about Rs5,500 crore this fiscal as it plans to launch more projects this year in cities where it is already present as well as new locations.

“We have a land bank of about 7,500 acres across the country. We want to monetize our land bank and therefore the company has decided to focus this year on getting approvals for more projects and then launching it," Unitech vice president (corporate planning and strategy) R. Nagaraju said.

He also said the company has earmarked an investment of Rs2,000 crore in the current fiscal year on construction against Rs1,500 crore during last fiscal.

Nagaraju said the company has launched 14 projects since January and plans to bring more this fiscal.

In February, Unitech had announced that it would launch 10 million sq ft of area in next six months, out of which the company has so far launched three million sq ft.

The company plans to enter new cities like Hyderabad, Cochin, Bangalore and Dehradun by September.

“We are aiming for about 20% growth in sales booking in 2011-12 fiscal from about Rs4,500 crore last fiscal," he said and claimed that the company’s sales booking have not been affected because of controversies related to 2G telecom scam.

Unitech managing director Sanjay Chandra, who is also the chairman of Unitech Wireless, has been arrested by the CBI in connection with 2G scam.

Unitech Wireless is a joint venture between Unitech and Norway’s Telenor. Telenor has about 67% stake in Unitech Wireless while the rest is with Unitech.