The group has decided to convert non-performing assets into profitable ventures, largely in the real estate area.
An internal study about the number of non-performing assets and also the value of such assets is being done.
Kolkata, Feb. 27
The West Bengal Chief Minister, Mr Buddhadeb Bhattacherjee, today unveiled the foundation stones of three major RPG projects in the state involving an investment of about Rs.1,200 crore.
The projects include the 4-lakh sq. ft modern super shopping arcade, to be built on CESC land (three acres) in association with Godrej Properties. This marks the entry of Godrej Group into real estate business in the State. The CESC-Godrej Plaza will be completed within a time-frame of two years.
Briefing presspersons on the new projects, Mr. Sanjiv Goenka, Vice-Chairman of the RPG Group said that the Rs 9,000-crore group had several "non-performing" assets throughout the country. The group has, therefore, decided to convert these assets into profitable ventures, largely in the real estate area. It was currently being studied internally about the number of non-performing assets and also the value of such assets.
If found that property development could be profitable as a sustainable business proposition, the group might set up a separate real estate company, to develop the assets, said Mr Goenka.
As the understanding between industry and the West Bengal Government was so meaningful, the RPG Group thought it fit to build an international management institute in the city, to be located at Alipore in the western part of the metropolis. As the State moved ahead with new industries, giving a boost to commerce both at the national and international levels, there would be need for more trained managers, he added. In fact, IIM Kolkata may be able to fill this gap partly. Hence, the initiative to set up a new international management institute.
In addition to the shopping mall and management institute, the foundation stone of the 3rd power unit (500 MW) at its existing 500 MW-capacity Budge Budge project, was also laid. The capacity addition is estimated to cost around Rs.1,000 crore. He said land for the Budge Budge expansion was being arranged by Haldia Development Authority. It has been decided by the CESC management to utilise the land of its closed plant at Mulajore.