HYDERABAD: A Telangana government entity has approved a restructuring plan by consultancy firm EY for a project that includes a 100-storey trade tower in Hyderabad. Reliance Infrastructure, the company which was to implement the Rs7,000-crore project, is hoping that the government will give the plan its go-ahead to the stalled venture.
Reliance Infrastructure had proposed to build the project on 76.2 acre at Manchirevula on Hyderabad outskirts, involving 20 million square feet of built-up area. Industrial Infrastructure Corporation (IIC), a government arm, will have 11 per cent equity holding in the special purpose vehicle executing the project.
A senior IIC executive, who did not want to be identified, said Reliance Infrastructure paid a little over half of agreed amount of Rs527 crore through debentures and cash but could not pay the rest. It is now seeking waivers for the remaining payments and penal charges and wants to first execute a business district project and take up the tower project later.
"A skyscraper project will help Brand Hyderabad and also the otherwise subdued property market," said C Sekhar Reddy, president of realtors' body Credai.
Touted as India's largest public-private real estate project that was comparable to skyscrapers such as Burj Dubai and Petronas Towers, it could not get off the ground because of the global economic downturn and the Telangana statehood agitation.
With a stable government in place and an improving global economic environment, Reliance Infrastructure evinced interest in reviving the project while seeking some relief. The company has also initiated steps towards critical project clearances, including environmental approvals. It is also in discussions with strategic investors to induct them into the project after signing the revised agreement with the Telangana government, said a Reliance group executive who did not want to be identified.