City-based Marg Ltd (formerly Marg Constructions Ltd) has launched a mega integrated township project called Marg Swarnabhoomi, near Chennai.

The $400 million project will be developed on 1,000 acres in the Cheyyur taluk on the East Coast Road, G.R.K. Reddy, chairman & managing director of Marg, told reporters here Thursday.

The project involves the construction of two special economic zones (SEZs) on 612 acres and social and residential buildings in the rest. New Chennai Township Pvt Ltd, a wholly owned subsidiary of Marg, would be promoting the project, Reddy added.

The three-phase project will be completed by 2014.

‘In the first phase, we will construct the SEZ for light engineering industries like aviation, auto component manufacturers and the like. It will be ready by 2010,’ said B.G. Menon, executive director.

He said the company was in talks with eight auto component manufacturers, who have shown interests in the SEZ.

The other SEZ will be for companies in the services sector like information technology, hospital and others.

According to K. Malmarugan, vice president of SEZ, the company has got all the approvals relating to the SEZ.

Speaking on the residential apartments, Menon said the houses would be affordably priced less than Rs.2,000 per square feet.

Funds for the project would be raised from a mix of equity (Rs.2 billion-$5.6 million), debt (Rs.4 billion-$101 million) and discounted lease revenue from properties, said Suresh Ramakrishnan, assistant vice president-finance.

Marg has already pumped around Rs.850 million ($21.5 million) into New Chennai Township out of which Rs.650 million ($16.5 million) is towards land acquisition and Rs.200 million ($5 million) towards other expenses.

Marg hopes to realise around $1billion from this project. Source: newspostindia