Tata Sons' $1-bn infra fund to close by Dec

Tata Realty and Infrastructure, which hopes to develop projects worth Rs 20,000 crore over the next three years, today said that the $1 billion infrastructure fund, sponsored by its parent company Tata Sons, is expected to close by 2009-end.

"The offshore fund was started in the middle of the last year. We hope to close the fund by the last quarter of the current calendar year," Kishore Saletore, chief financial officer, TRIL, said here. 

Established in 2007, TRIL, a 100 per cent subsidiary of Tata Sons, has already raised a $700 million offshore fund for investing in its real estate projects, which would receive Rs 11,000 crore investment out the proposed Rs 20,000 crore over the next three years.

"The offshore fund for the infrastructure sector is likely to see investment from investors in Asia and Europe.In fact, a few of of the existing invetors in our realty fund is keen to invest in the infrastructure fund," Saletore said.

The fund would be used by TRIL to finance its projects, he said, adding, however, that Tata Group's real estate arm, Tata Housing, could also use the fund for its FDI-compliant projects. TRIL's Managing Director and Chief Executive Officer Sanjay Ubale said that apart from developing Rs 11,000 crore real estate projects, the company also plans to take up road projects worth Rs 5,000 crore and other infrastructure projects worth Rs 4,000 crore over the next three years.

TRIL is developing three IT/ITeS SEZs in Chennai, Pune and Ahmedabad, seven lakh sq ft retail complex in Amritsar and evaluating a residential and mixed use development on a 35-acre plot in Gurgaon.

Ubale said that the company would undertake 2-3 infrastructure projects during the next one year and plans to invest Rs 5,000 crore. TRIL's wholly-owned subsidiary Navinya Buildcon has bagged the 4-laning of Pune-Solapur Highway project from the National Highways Authority of India along with Italy's Atlantia, with which TRIL has tie-up for roads and highways development projects.

TRIL has identified key thrust areas including roads and bridges, urban infrastructure, airports and logistic parks, he said, adding that the company would bid for NHAI projects, state highways.    

"We are also evaluating metro, monorail, transport projects and redevelopment of rail stations and bus terminus," he said. TRIL, whcih has partnered with Changi Airports India, has already submitted special bids for participation in Udaipur and Amritsar airport project bids.

The company has tied up with Mitsubishi Corporation for metro projects and Grandi Stazioni for New Delhi Railway Station redevelopment,as well.

It is also planning to develop an SEZ at Gopalpur in Orissa in association with Tata Steel.