MODERN TO RAISE RS 100 CRORE FROM PE FIRMS FOR KHAPOLI SEZ PROJECT

Mumbai
The Economic TimesProperty developer Modern India today said it is in talks with two-three private equity (PE) firms to raise Rs 100 crore for its proposed Rs 675 crore IT SEZ at Khapoli in Mumbai.

"We are in discussion with 2-3 PE firms to raise upto Rs 100 crore," Modern India Chairman and Managing Director Vijay Jatia said here.

The proposed SEZ, to come up on 43 acres of land, has received nod from the Board of Approval but is awaiting notification.

"We have already acquired 36 acres of land and is in the process of acquiring additional 6-7 acres for which we have already started discussions," Jatia said.

Construction work for the SEZ is expected to start by December this year. Apart from raising Rs 100 crore from PE firms, Modern India plans to raise Rs 400 crore as debt from local financial institutions.

"We are in talks with banks here and a public sector bank has agreed to syndicate the entire debt," Jatia said declining to reveal the identity of the bank.

Modern India itself would put in Rs 100 crore from internal accruals into the project and it expects the remaining Rs 75 crore to come as advances from companies intending to set up shops there, he said.