The state government's ambitious plan to build an energy and telecom city near Panvel will be scrapped after the bank it collaborated with decided to change plans mid-way.
Bahrain-based investment bank, Gulf Finance House (GFH), which planned the entire project, has now tied up with the Wadhwa Group to build a sprawling township on the 1,250-acre land.
In 2006, GFH announced two projects - Energy City Navi Mumbai (ECNM) and Mumbai IT and Telecom City (MITTIC). The state government had even signed a memorandum of understanding with GFH but unfavourable market conditions impeded their plans.
Srini Gopalan, chief financial officer of the Wadhwa Group said new plans are being drawn up to create a world-class township.
"Our thrust is on the creation of affordable houses," he added. In addition to residential complexes, schools, colleges, malls and recreation facilities will be part of the township.
Under the terms of the agreement, Wadhwa group would develop the land owned by GFH. Reports suggest that approximately USD 1 billion has been invested in the project. Wadhwa group would hand over 10 million square feet of built up area to the GFH and as compensation, would get the remaining area to either sell or lease in the open market.
Gopalan said the upcoming international airport in Panvel as well as the proximity of the township to both Mumbai and Pune would be the unique selling point of this project.