Shapoorji Pallonji, the $8.5 billion conglomerate, has picked up a 30-acre plot from Prasoon Mukherjee's Universal Success to launch an "affordable" housing project in Howrah.
The group, whose businesses span infrastructure, real estate and construction, plans to formally launch the project in January, raising hopes for the revival of the adjacent township - Kolkata West International City - that Universal Successhas struggled with for many years.
The Shapoorji Pallonji project won't directly be part of Mukherjee's Kolkata West, near Kona Expressway, since the Mumbai-based firm doesn't want to be tagged with the troubled past of the township. Shapoorji will come out with its own brand and the project will be executed and delivered by it.
"This project will be positioned in the aspirational housing segment, starting with a ticket size of Rs 15-20 lakh. It would be part of a bigger brand Shapoorji intends to launch across India in January," said Cyrus Engineer, senior vice-president of sales and marketing at Shapoorji & Pallonji Real Estate.
Mukherjee, who is based in Singapore, didn't take calls or respond to text messages from Metro.
The Shapoorji project had a soft launch at the property fair organised by the real estate developers' forum Credai over the weekend. This will be the second project in town by the company, which is building Sukhobristi in New Town.
Shapoor P. Mistry, chairman of the Shapoorji Pallonji Group, had visited Calcutta in 2012 and met chief minister Mamata Banerjee.
Mistry, whose group is the single largest shareholder in Tata Sons, had then announced a slew of infrastructure projects, including a deep-sea port and hydel power station. Mukherjee was present during that meeting at Writers' Building on August 1, 2012.
The Howrah project would have 3,400-odd flats of different sizes spread across more than 25 G+17 towers in three phases. The first one would be ready by mid-2019, the senior VP said.
The company seems to be aware that the Kolkata West International City project suffered for want of adequate social infrastructure such as a school and a hospital, among others. It is in dialogue with several players in these sectors to set up base in the area. There is also talk of setting up a football school with a mini stadium.
Chequered past
Kolkata West, touted as one of the early-bird foreign direct investments in India's real estate sector, had been officially launched by former chief minister Buddhadeb Bhattacharjee with Benny Santoso of Indonesia's Salim Group by his side on February 15, 2006, ahead of the Assembly polls.
Since that ceremony dripping with promise, nothing seems to have gone right for the 377-acre township project.
Foreign partners Salim and Ciputra of Indonesia exited the venture, leaving the burden of completing it on the then Jakarta-based Mukherjee.
Buyers who invested in a villa or an apartment were soon complaining about the quality of construction and lack of infrastructure. Delay in handing over properties is another peeve point.
Many owners formed groups and staged demonstrations against the developer. "If you go to any of the property portals, you will see how many units are on sale at KWIC. Everyone seems to be a seller there," said a city-based real estate consultant.
The Shapoorji project could benefit Kolkata West, although the two won't be linked. "It is a renowned brand and has a reputation of timely delivery of quality projects. Given its strengths, the company is more likely to be successful in attracting investors in social infrastructure such as schools and hospitals. If that happens, KWIC buyers will get collateral benefit," a real estate analyst said.
But questions are being raised about how Shapoorji managed to pick up land from Universal. Bengal had leased out the land in 2005 for 999 years to the original developers of Kolkata West.
