Special Correspondent

To develop IT township in West Bengal

BANGALORE: Hindustan Motors (HM) has finalised an arrangement with Shriram Properties Ltd, Bangalore, for developing an integrated IT township and an auto park on 314 acres, identified by the West Bengal Government. The company will be submitting all necessary applications for approval.

HM had proposed a revival and renewal plan, including development and modernisation of existing facilities at Uttarpara into a contemporary automotive forging, casting and stamping facility and expansion of its product range. The West Bengal Government under its Industrial Renewal Scheme 2001 had accepted the proposal in September 2006.

The IT township and auto park will be jointly developed through a Special Purpose Vehicle (SPV). Hindustan Motors will receive around Rs. 295 crore as consideration in five tranches spread over ten quarters as well as `non-compete fee' equal to four per cent of the sale proceeds.

HM had engaged HDFC for advising on identification of prospective developers, evaluation of bids and conclusion of commercial terms, Shriram Properties said here on Tuesday.