The Shapoorji Pallonji Group has entered into a partnership with Standard Chartered Private Equity, World Bank Group member IFC and the Asian Development Bank for building affordable housing projects across India. The venture would invest $200 million (about Rs 1,250 crore) in the affordable space.
Currently, the Group is developing one of Asia’s largest affordable housing projects in Rajarhat, Kolkata with 20,000 apartments of which nearly 7,500 homes have been completed, according to a statement by the company.
This is one of the largest capital inflows in the affordable housing space in the country, the company added.
This venture will look to develop about 20 million sqft of quality affordable housing homes across the country spanning cities including Mumbai, Pune, NCR, Chennai, Kolkata, Bengaluru and Ahmedabad in the next eight years.
There would be a focus on both tier-1 and tier-2 cities with project sizes in the range of 1.2mn-5mn sqft. The new entity will have a dedicated team to build on the business plan and will launch these projects under a new Brand.
The developments will majorly include 1BHK apartments of 500-600 sqft and 2BHK apartments of 800-900 sqft priced between Rs 15-50 lakhs per unit.
Constructed by Shapoorji Pallonji Engineering & Construction, the projects would be targeted at the aspirational and growing middle-class and will provide enhanced amenities including recreation areas, children play areas, health, sport and activity areas amongst other support facilities.
Jai Mavani, Executive Director, Shapoorji Pallonji Group said, “Through this venture we are also privileged to meaningfully contribute to the Prime Minister’s vision of providing 20 million houses by 2020.”
In June this year, Prime Minister Narendra Modi launched the housing for all scheme or Pradhan Mantri Awas Yojana that aims to provide at least 20 million homes to people belonging to the economically weaker sections (EWS) and lower income categories over the next seven years. The project is expected to cost around Rs 100,000 crore. There is a shortage in the housing space in India at around 18.4 million units, most of which is in the EWS category, according to estimates.