Real estate firm Ansal Properties' education arm Knowledge Tree Infrastructure (KTI) will invest about Rs 400 crore over the next five years to set up two education cities in Lucknow and near Jaipur. "We are planning two education cities of about 100 acres each where not only we will start our own educational institutions but many more foreign institutes which are bound to come to India will be housed," API Chief Operations Officer (Education) Raj Singh told PTI.
"For Lucknow, we are looking at anything from Rs 200 to Rs 250 crore and for Kishangarh (near Jaipur-Ajmer) it will be about Rs 100-150 crore," he added.
The company has already procured land for the project and funds will come from the parent company Ansal API and from bank loans, Singh said.
The education cities provide higher education and will be a part of the Ansal townships in the two cities. Ansal operates in the education vertical through schools under the 'Chiranjiv Bharti Schools' banner and for higher education through Ansal Institute Of Technology and Sushant School Of Art and Architecture.
"Currently, the revenues from the education vertical are quite small. It is only about Rs 8-9 crore, but we are keen to expand this segment," Singh said.
The company had last year tied up with education solutions provider Educomp Solutions for managing 17 schools, under the 'Millennium School' brand, to be developed by Ansal entailing an investment of Rs 250 crore.
In return, Educomp had picked up 5 per cent stake in KTI. "The project is on track. We are looking at delivering four schools in 2009 and 2010. We have also identified sites for setting up three schools in 2011, which has to be approved by Educomp so that the project can begin there," he said.