L & T In Pact For Rs 1500cr Infocity In Andhra Pradesh

An agreement was signed Saturday between L&T president A Ramakrishna with the APIIC managing director, Chandrasekhar, in the presence of the state chief minister N Chandrababu Naidu and senior state officials.

L&T was selected out of six ciompanies, including Reliance Industries, Western India Industrial Estates and Globan Technological Parks, that had offered to set up the infocity as a joint venture. The chief minister said the setting up of the infocity will make Hyderabad a major centre for information technology-related activities.

Under the joint venture agreement, a new company will be formed with an equity of Rs 18 crore with L&T holding 89 per cent of the equity.

The balance 11 per cent will be with APIIC. The contribution of APIIC will be in the form of land.

The state government has earmarked 158 acres of land at Madhapur, on the

western outskirts of Hyderabad for the project.

The excess value of land over APIIC's equity contribution will be treated as an interest-bearing loan to the joint venture company.

The chief minister said the project will be executed in phases over the nexct 10-12 years.

In the first phase, the company will develop over three lakh square feet of built-up area on a six-acre plot at an estimated cost of Rs 80 crore.

The first phase is expected to be completed by December 1998.

The Infocity will comprise office spaces, residential accommodation, recreation centres, showrooms, conference facilities, convention centres, restaurants and banks of international standard.