Hindustan Motors, Shriram Properties plan IT township

Hindustan Motors Limited (HML) today finalised an arrangement with M/s Shriram Properties Ltd, Bangalore for the development of an “Integrated IT Township and Auto Park” in 314 acres of land identified for this, in accordance with the Government of West Bengal’s order of September 2006. This would also facilitate the funding of the company’s Modernisation and Revival Programme at Uttarpara.

The company will forthwith submit necessary applications to the consortium of lenders since this arrangement is subject to their approval.

HML had proposed a Revival & Renewal Plan, which envisaged development & modernisation of existing facilities at Uttarpara into a contemporary automotive forging, casting & stamping facility as well as expansion of product range. The Govt. under the West Bengal Industrial Renewal Scheme 2001, had accepted this proposal, in September 2006. The arrangement finalised today is in accordance with the relevant Govt. Order. The land is currently owned by the company.

The proposed world class “Integrated IT Township & Auto Park” would be one of the first such, and is sure to bring sustained socio economic benefits by creating opportunities for direct employment as well as indirect employment. This world-class technology oriented project, will be completed over five to seven years.

The “Integrated IT Township & Auto Park” would be developed jointly through a SPV. As consideration, HML will receive about Rs 295 Crores in five tranches spread over ten quarters as well as non compete fee equal to 4% of sale proceeds.

Hindustan Motors had engaged M/s.HDFC Limited for advising in identification of prospective developers, evaluation of bids and conclusion of commercial terms.

Sourced From: Perfect Relations Limited