Shapoorji Pallonji to fund its Bengaluru and Eluru smart city projects by raising Rs 450 crore

In its attempt to fund its Bengaluru and Eluru smart city projects, Shapoorji Pallonji, a leading Real estate Company, is aiming to raise Rs 850 crore in the next six months.

As per a company official, it is looking forward to raise debt of Rs 450 crore for the Eluru project and Rs 400 crore for the Bengaluru project.

“We are trying to tie up funds for both the projects. Both are BOT projects and will be funded by debt. We are approaching multiple lenders, including IFC,” said Debasis Mitra, the director of Shapoorji Pallonji.  

Mr Mitra stated that the company is looking to raise funds for the Bengaluru project in the next four months and within the next six months for the Eluru project.

The Eluru project is estimated to be worth Rs 1,400 crore, and the one in Bengaluru is around Rs 1,000 crore. As per the sources, the former is a suo moto proposal and it signed the relevant contract recently. It is based on a hybrid annuity model. The company is gearing up for seven different projects like road improvement, 19 traffic junction improvement, intelligent traffic management, smart grids and energy management, sewage treatment and storm-water drainage. Being the company’s first independent smart city project, it will operate and manage it for 10 years.

Based on a public private partnership model, the Bengaluru project will be replacing around 5 lakh street lights with LED bulbs. Being a smart project, it will be equipped with sensors at poles for controlling the lighting and saving energy.