New Delhi: Real estate developer Omaxe Ltd and retailer Vishal Retail Ltd are teaming up to develop retail properties in as many as 50 of New Delhi’s metro stations to target millions of urban commuters.

Omaxe is looking to bid for projects at small and medium stations with Vishal over the next three years. The firm has an in-principle agreement with Vishal to jointly bid for projects, but “nothing is on paper yet," said Vipin Aggarwal, executive director, Omaxe. The metro projects would entail an investment of Rs300-400 crore, he said.

The joint venture (JV), in which Omaxe will hold 51% and Vishal 49%, plans to jointly develop space in new metro stations where Vishal will operate its hypermarkets and supermarkets, according to another person close to the situation who asked not to be named, because he’s not authorized to speak to the media.

On Monday, Omaxe informed the Bombay Stock Exchange that it has entered into an agreement with Vishal for developing commercial space at Chawri Bazaar metro station in Delhi. Vishal raised money in a public share offer that was oversubscribed 69 times even though it opened on the same day as DLF Ltd’s early Rs10,000 crore offering. Vishal, which operates discount stores, raised Rs110 crore in its June offering.

Currently there are 59 stations on the Delhi metro line, but in the next phase that ends by 2010, the transport firm will add 79 more stations and most of them would have retailing space depending on the size of the stations, said Anuj Dayal, spokesman for Delhi Metro Rail Corp. (DMRC).

“DMRC has to supplement its income through commercial exploitation" of retailing space available, Dayal said.

The Omaxe-Vishal venture will rival that of Parsvnath Developers Ltd, which has so far dominated the development of retailing space at the metro stations in New Delhi.