Shapoorji Pallonji to raise Rs 850 cr for two smart city projects


VARANASI, Mar 10: Construction major Shapoorji

Pallonji, which is eyeing opportunities in the smart city

space, is looking to raise Rs 850 crore over thesix months to

fund its Bengaluru and Eluru smart city projects, a top

company official has said.

It is looking at raising a debt of Rs 450 crore for

the Eluru project and Rs 400 crore for the Bengaluru project,

the official added.

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, Shapoorji

Pallonji director Debasis Mitra told a select media group


He said they are looking to raise funds for the

Bengaluru project in the next four months and within the next

six months for the Eluru project.

While the Eluru project is worth Rs 1,400 crore,

Bengaluru its Rs 1,000 crore.

Eluru project is a suo moto proposal and it signed the

relevant contract recently.

It is a hybrid annuity model and the company will do

seven different projects like road improvement, 19 traffic

junction improvement, intelligent traffic management, smart

grids and energy management, sewage treatment and storm-water


It will be the companys first independent smart city

project and it will operate and manage it for 10 years.

The Bengaluru project is a public private partnership

project where the company will replace 5 lakh street lights

with LED bulbs and will be a smart project that will have

sensors at poles to control the lighting and save energy.

Its a consortium where Shapoorji Pallonji owns 59

percent stake, Samudra Technologies has 15 percent stake and

SMC the remaining 26 percent share.

The project will be completed in the next 30 months

spread over five phases and it will operate and manage it for

10 years.

Recently it completed a Rs 150-crore command and

control centre for the Varanasi smart city in an EPC model.

It will operate and manage the city for the next five


The USD 6-billion Shapoorji Pallonji group said it is

looking at more opportunities in the smart cities and

IT-enabled areas but would be selective in its bids and would

look at projects over Rs 150 crore with three or four

integrations. (PTI)