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Puravankara Scales Down Development of Hyderabad Hi-Tech City project |
Puravankara Projects Ltd, which had won the bid in 2007 to develop a Hi-Tech City in Hyderabad on a 30-acre plot, will now be developing only 20 acres. The developer had to pay a total of Rs 630 crore for the 30-acre plot. Of this, it has already acquired 20 acres for Rs 403 crore. However, it has now been allowed by the Andhra Pradesh government to cancel the purchase of the remaining 10 acre for Rs 227 crore without any penalty. Mr. Ravi Ramu, director (finance), Puravankara Projects Ltd, said the company's move is driven by the current situation of the realty market. Though usually there is a penalty for cancelling such an obligation, the Andhra government has waived it off for the developer. The real estate company is planning to begin work on the project soon. "It will be a mixed-use development of retail, residential, commercial and hospitality projects," said Ramu. The investment on the project is now expected to fall by a third to Rs 2,334 crore from Rs 3,500 crore.
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| Saturday, January 31, 2009 |
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