A Rs 10-crore home ($2.5 million ) in a 400-acre Marina on the Bay of Bengal, just an hour’s drive from Chennai could be up for the taking in a few years. It will come up along with a miniport, and be developed as a luxury waterfront project.
Rakindo Developers, a 50-50 joint venture between Rakeen, promoted by the Government of Ras Al Khaimah, UAE, and the Chennai-based Trimex Group, is expecting to invest $5 billion worth in real estate projects in India totalling 50 million sq feet of development over the next 5- 8 years.
The Marina project that comes up on an estuary and a home-away-from-home in Kumarokom, in Kerala are the two luxury projects waiting for environmental clearances. The company is otherwise planning to focus on integrated townships as a model housing offering for different budgets, and plans to stay away from city projects.
It already has 4,000 acres, and according to the Managing Director, Mr Prasad R. Koneru, another 5,000 acres are in the offing. “We have already invested $100 million, and will be investing another $100 million in 2008,” said Dr Khater Massaad, CEO, RAK Investment Authority. The projects cover Coimbatore and Chennai in Tamil Nadu, Kumarakom and Kochi in Kerala. An 800-acre township and SEZ has also been planned about 10 km from Coimbatore.
According to Mr Koneru, the SEZ will focus on IT and the township will also serve Tirupur. The traditional ground breaking ceremony of the 650 acres of phase one is expected to take place in February 2008. The company is hoping to have a 50-50 debt–equity ratio, and could consider raising equity down in 4-5 years.
RAK Investment Authority is also investing in a $2 billion mining project in partnership with the Andhra Pradesh Government. The 1.5 million tonnes of alumina and 350,000 tonnes aluminium smelter project will also have a captive power plant.
Tuesday, December 04, 2007
Crisil report for Coimbatore corporation
The Coimbatore Corporation is awaiting a report on its creditworthiness, set as it is to implement a number of infrastructure development schemes for the city under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM).
Credit Rating and Information Services India Limited (Crisil), a national level rating agency, is in the process of assessing its funding schemes and repayment potential.
While going for loans is decidedly an option, the civic body may also explore the possibility of floating infrastructure bonds. But the bond option is subject to Crisil’s grading.
The credit rating exercise is essential, as the corporations of 63 cities chosen for schemes under the JNNURM are expected to meet 30 per cent of the cost of projects on their own.
Grant
Schemes worth Rs. 3,186 crore have been drawn up for Coimbatore city, and 30 per cent of the amount has to be met by the Corporation. Central Government grants will cover as much as 50 per cent.
While the JNNURM envisages a 20 per cent grant from the State Government, it is being made available to the Coimbatore Corporation as an interest-free loan. This puts the burden of funding to an extent of 50 per cent on the Corporation.
As for its own contribution of 30 per cent, the resource mobilisation mode has been left to the civic body. It can raise loans provided it is found credit-worthy.
Report
“We expect the credit rating report to be submitted in a month,” says Corporation Commissioner P. Muthuveeran, in response to a question on whether the civic body will go in for bonds.
“Bonds can certainly be an option. But a suggestion for this will be made by the agency on the basis of its findings,” he says.
The Commissioner’s response implies that it will depend on the Corporation’s credit-worthiness.
The Corporation had contemplated floating bonds for the underground drainage scheme a few years ago, but did not pursue it.
The local body is now set to take a fresh look at this option in the wake of Local Administration Minister M.K. Stalin announcing a month ago that the Salem Corporation and some other municipalities in the State have the option of floating bonds to raise funds for infrastructure development schemes.
Credit Rating and Information Services India Limited (Crisil), a national level rating agency, is in the process of assessing its funding schemes and repayment potential.
While going for loans is decidedly an option, the civic body may also explore the possibility of floating infrastructure bonds. But the bond option is subject to Crisil’s grading.
The credit rating exercise is essential, as the corporations of 63 cities chosen for schemes under the JNNURM are expected to meet 30 per cent of the cost of projects on their own.
Grant
Schemes worth Rs. 3,186 crore have been drawn up for Coimbatore city, and 30 per cent of the amount has to be met by the Corporation. Central Government grants will cover as much as 50 per cent.
While the JNNURM envisages a 20 per cent grant from the State Government, it is being made available to the Coimbatore Corporation as an interest-free loan. This puts the burden of funding to an extent of 50 per cent on the Corporation.
As for its own contribution of 30 per cent, the resource mobilisation mode has been left to the civic body. It can raise loans provided it is found credit-worthy.
Report
“We expect the credit rating report to be submitted in a month,” says Corporation Commissioner P. Muthuveeran, in response to a question on whether the civic body will go in for bonds.
“Bonds can certainly be an option. But a suggestion for this will be made by the agency on the basis of its findings,” he says.
The Commissioner’s response implies that it will depend on the Corporation’s credit-worthiness.
The Corporation had contemplated floating bonds for the underground drainage scheme a few years ago, but did not pursue it.
The local body is now set to take a fresh look at this option in the wake of Local Administration Minister M.K. Stalin announcing a month ago that the Salem Corporation and some other municipalities in the State have the option of floating bonds to raise funds for infrastructure development schemes.
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