Nanocity, Haryana | 11,000 acre city | Cancelled

[2Paise]

Parsvnath to hold 38% in Sabeer Bhatia's Nanocity

CHANDIGARH: Finally its official. Delhi-based realtor Parsvnath Developers will hold 38% stake in the Rs 1,800-crore Nanocity project.

The company would be subscribing to the capital of Nanocity, which is a joint venture between Sabeer Bhatia and Parsvnath Developers. Nanocity will have projects relating to nano-technology, biosciences, software product development, materials research etc.

A new company, Nanoworks, would also be set up, which would raise money through an IPO, expected to be in the region of Rs 1,000-1,200 crore.

Bhatia is expected to land in India next week to sign an MoU with Parsvnath Developers.

However, Parsvnath has denied any such development. When asked about the development, company advisor PK Jain said, “I am not aware of any such development. May be, you know more.”

The Nanocity project, spread over 11,138 acres, is modelled on the Silicon Valley and will come up in two phases.
Haryana State Industrial and Infrastructure Development Corporation (HSIIDC) and Nano Works Developers (P) Ltd had signed a joint venture to set up the knowledge city in Panchkula district in November, 2006.

[IndiansUnite]

Originally Posted by 2Paise

Parsvnath to hold 38% in Sabeer Bhatia's Nanocity

He finally admitted the tie up -

Parsvnath confirms tie-up with Sabeer Bhatia's Nanocity

NEW DELHI: After days of denial and speculations, Delhi-based realtor Parsvnath has acknowledged its tie-up with the Sabeer Bhatia-promoted Rs 18 billion Nanocity project, to be built on the lines of Silicon Valley in the US.

“We are not denying the news. The talks are on between the two companies and the official announcement will come in after the formal agreement is signed,” Pradeep Jain of Parsvnath Developers told IANS Friday.
...

[IndiansUnite]

edited

[2Paise]

When asked about the development, company advisor PK Jain said, “I am not aware of any such development. May be, you know more.”

Oh man i find this hilarious!

[phaedrus]

Originally Posted by 2Paise

Parsvnath to hold 38% in Sabeer Bhatia's Nanocity

Originally Posted by IndiansUnite

He finally admitted the tie up -

Parsvnath confirms tie-up with Sabeer Bhatia's Nanocity

and finally


Parsvanath picks 38 percent stake in Nano City

Realty major Parsvanath Developers has picked up a 38 percent stake in entrepreneur Sabeer Bhatia's much-hyped Nano City Haryana project, the company said here Wednesday.

Parsvanath will invest Rs.4 billion ($100 million), as equity and debt in Nano City Haryana Ltd.

The project, valued at $12 billion, will be completed in 10 years. Parsvanath will develop 5,000 acres of the 11,000-acre mega-project in the first phase.

The Bhatia-promoted Nano City group will hold 52 percent in the company, and the rest will be with the Haryana government.

At an interaction with reporters, Bhatia said Nano City will be the future model of infrastructure development in the country as it shifts from a service-based economy to knowledge-based economy.

"Nano-technology is the future, and this city will host dozens of high-tech research-oriented projects on the Silicon Valley model," he said.

source economictimes.com

[2Paise]

Parsvnath Developers, Sabeer Bhatia to develop a knowledge city in Chandigarh

Realty estate major Parsvnath Developers has joined hands with Sabeer Bhatia, co-founder of Hotmail, to develop a 11,138 acres knowledge city near Chandigarh.

The project, which is fully approved by Haryana Government, is in Panchkula near Chandigarh, and Just over 200 kms north of Delhi. The city named as "Parsvnath Nanocity" is envisaged to sustain modern lifestyle and will have world- class infrastructure.

In this public-private partnership project, which is valued at Rs 5000 crore, the Haryana government will hold 10% equity stake, Parsvnath developers will have 38% and the balance 52% stake will be held by Sabeer Bhatia promoted group.

The developer plans to raise funds for the project through a mix of debt and an IPO within 18-24 month for completing the project.

The project is scheduled to be completed in two phases over the next 10 years, where the Parsvnath plans to develop 5,000 acres in the first phase.
The company has already acquired about 1,500 acres and presently in talks with various land owners for acquiring the rest.

[powai_mumbai]

Originally Posted by 2Paise

Parsvnath Developers, Sabeer Bhatia to develop a knowledge city in Chandigarh

Its already been a year and we dont see any developments being made there.
If the Phase II would take 10 years, then Sabeer Bhatia is really dreaming about this project.
He has to implement things at a faster pace, there is no connecting airport to this Nanocity, for people to invest and live here, there has to be hotels, hospitals, schools, colleges, malls, shopping etc...He just cant take people for a ride.

[Euromast]

^ International airport in Mohali is 8 kms away which is under implementation. This place is 7 kms away from chasndigarh

[..devil..]

Originally Posted by powai_mumbai

Its already been a year and we dont see any developments being made there.
If the Phase II would take 10 years, then Sabeer Bhatia is really dreaming about this project.
He has to implement things at a faster pace, there is no connecting airport to this Nanocity, for people to invest and live here, there has to be hotels, hospitals, schools, colleges, malls, shopping etc...He just cant take people for a ride.

oh no you didn't!
now wait for jai and his comrades to create a 500 word post on why this project "will" materialize.

[2Paise]

Good read>>> S.F. tech mogul wants to build city in India

[Jai]

Originally Posted by ..devil..

oh no you didn't!
now wait for jai and his comrades to create a 500 word post on why this project "will" materialize.

As opposed to your mincing whines and tearful one-liners?

[IndiansUnite]

Planned India complex stymied by credit crunch

Andrew S. Ross
Monday, December 15, 2008

Thanks to the U.S.-originated credit crunch, India is going to have to wait to see its most advanced city spring to life. Nano City, the brainchild of Hotmail co-founder Sabeer Bhatia, was well on its way to its groundbreaking, financed largely by $300 million Bhatia thought he was going to get from enthused Indian banks. That was before the global roof caved in. "No bank in the world is going to lend that kind of money now," says Bhatia.
Bottom Line

The $5 billion Silicon Valley-style development, in the northern state of Haryana, was supposed to see the first of its projected half-a-million people, plus its first university and small businesses, by 2010. The city's master plan, drawn up by UC students and professors with the Berkeley Group for Architecture and Planning, incorporates the modern day sine qua non principles of sustainability, alternative energy, open space and modern mass transit. All features in which India, for all its IT prowess and superpower aspirations, is notably lacking.

So, now what? Bhatia is talking to investment companies outside India, like 3i, the giant British private equity firm, whose India Infrastructure Fund raised $1.2 billion earlier this year. Meanwhile, Nano City has been pushed back at least a year, maybe longer, says Bhatia, who lives in San Francisco. "We're in a pattern of wait and see. We're hoping the markets will start flowing again some time next year." But his dream remains very much alive. "It's a very viable project," says the man who sold Hotmail to Microsoft for $400 million and has invested $10 million-plus of his own money in Nano City. "There is enormous need and demand in India for this kind of thing."

[India101]

Damn. Would have been great if this started construction.

[GJ10]

Just noticed this thread and im a bit confused.

Sabeer Bhatia's last comments about the Haryana NanoCity were on Dec 15th 08, talking about how this project is going to be delayed and how loans are not going to be possible...

But about a month later, 12 Jan 09, at the Vibrant Gujarat summit he was talking about developing a NanoCity in Gujarat

Co-Founder of Hotmail has plans to develop Gujarat as Silicon Valley

AHMEDABAD: Hotmail Co-founder Sabeer Bhatia on Monday said he looks toward cultural innovation in Gujarat and has plans to develop the state as the next Silicon Valley.

"We have got Letter of Intent (LoI) from Carneige Mellon University for setting up a Nano city that will have software development facility for niche sectors such as nano technology, bio-sciences and material sciences," Bhatia said, during the inauguration of Vibrant Gujarat Global Investors Summit which began here today.

"With world class infrastructure here and support of the Gujarat government, we can make the state as next Silicon Valley of India by setting up a Nano city here," Bhatia said.

Sharing his experiences on emergence of silicon valley decades ago, Bhatia said the innovation at that time had led to phenomenal creation of value, and the model could be replicated here.

"Five decades ago Hewlett Packard created a small hub outside Standford that led to the birth of Silicon Valley, and in the last 10 years I have seen 1 trillion dollar of value being created because of cultural innovation," he added.

"India has huge potential for it, with a population of 1.2 billion people we create around half-a-million engineers annually, but somehow they are not able to make to make it to top echelons in key innovative hubs, therefore we need a nano city," Bhatia said.

The innovation can come through education and the Nano city will play a key role in software development for niche segments.

Does this mean the one in Haryana is off? Or in one month has he managed to find the money to build not just one but two of these NanoCities!?

[GJ10]

In part response to my own question... it seems as though Parsvnath are pulling out of the NanoCity project

Firstly, on 17th March:

Sabeer Bhatias NanoCitiy project hits roadblock

As the credit crunch worsens for realty developers, the latest project to bite the dust is Parsvnath and Hotmail co-founder Sabeer Bhatia’s proposed 11,000 acre IT hub called the Nano City at Naraingarh in Panchkula district in Haryana.

NDTV has learnt that Bhatia's partner Delhi-based real estate player Parsvnath Developers may pull out of the project, but the developer has denied any such plans.

"We wish to clarify that Parsvnath Developers Limited has no intentions of pulling out of the prestigious Nano City Project," Parsvnath Developers said in a statement.

Sources in Haryana government say Parsvnath has hinted towards pulling out of the project, which is expected to be worth Rs 50,000 crore.
While Bhatia owns the majority 52 per cent in the proposed project, the real estate major holds 38 per cent and the state government as its 10 per cent partner.

The blame game has already begun as Parsvnath says state government has failed to give contiguous land while government officials say they were to provide 25 per cent of the total land and that too, after the Parsvnath had acquired its share of land.

“As a matter of policy, acquisition of land has to be done by the private developers on a willing-buyer willing seller model. We are in regular touch with the developers. It's a prestigious project for the people of Haryana. There may be minor glitches here and there, but we are confident that the project will sail through,” said Shiv Bhatia, spokesperson of Haryana Government.

Ever since Parsvnath bought a stake in the project there have been concerns on the funding part as the investment coincided with a decline in real estate values and a sector wide slowdown.

Parsvnath's only consolation here could be that it has invested only about Rs 100 crore in the project so far and it can still jump out of it.

and then on 31st March

Snippet here also

The restructuring is clearly aimed at generating cash flows
for the Delhi-based real estate company, which has been facing fund crunch.

Recently, the company backed out from the ambitious Nano City project in Haryana for the same reason. Malls on metro stations are one business that Parsvnath hopes to leverage from.

I wonder, if the reports from the Vibrant Gujarat Summit turn out to be true, could this be the second "Nano" shift to Gujarat?

In essence, this whole project is probably quite easily transferrable to another location provided that enough land is available... which is rarely an issue in Gujarat.

[rick39]

Well i think they have pulled out from this project ... what you guys think ...ummmm

[GJ10]

I think a few of us saw this coming...

Knowledge Cities on Hold over Land-Acquisition

Sabeer Bhatia, a millionaire investor best know for founding free email service Hotmail, has proposed a knowledge city near Chandigarh and another in Dholera, Gujarat;

The Bhatia projects have been shelved as the developers and entrepreneurs involved are now shying from such long gestation projects because of delays in acquiring land and a severe cash crunch in the real estate industry triggered by the global slowdown.

Knowledge cities typically are enclosures of research-based industries and educational institutes, a physical bridging of industry and academics. In India, though, these projects have evolved as real estate ventures on large agricultural land parcels, primarily as partnerships involving state governments, realty developers and entrepreneurs trying to cash in on the property boom of the past few years.

Globally, knowledge cities are planned with a focus on research and development as in Singapore, Hsinchu in Taiwan, and in Silicon Valley, US, said Rajdeep Sahrawat, vice-president, National Association of Software and Services Companies, better known as Nasscom, an industry lobby.

“Building knowledge cities is not developing big, gated communities or IT parks. They should be ecosystems involving industries, commercialized research and development activity along with academic centres. That has not been the focus here (in India),” said Sahrawat in a phone interview. “Knowledge cities are at a nascent stage in India and the challenge would be to resist making real estate projects out of them.”

Bhatia’s proposed Nano City Haryana Ltd, an 11,000-acre knowledge city near Chandigarh in partnership with the Haryana government, is modelled on Silicon Valley but it too has hit the same hurdles the other projects have.
“We’ve encountered delays because of land acquisition issues,” Bhatia said by email on Friday. “There is a general economic slowdown in the world today, but we’re confident that we will come out of this well.”

The project was projected as a 10-year venture with an initial investment of Rs400 crore for companies involved in software development, nanotechnology, drug discovery, bio-technology, energy research and semiconductor research. Bhatia has a 52% stake in it, the Haryana government holds 10% and Parsvnath Developers Ltd, the remaining 38%.

Pradeep Jain, chairman of Parsvnath Developers, admits his company doesn’t have experience in developing a knowledge city, and they got into the project because it was an attractive deal. “(But) everyone is sceptical about long-term investment returns now and no one wants to block cash flow. Even though the project is fully sanctioned, you need money to acquire the land from farmers. And even if we acquire the land, there is no guarantee of its offtake,” said Jain.

The full article sounds the death-knell of between 4-6 of these projects, and is worth a read if you take that much disappointment in one sitting!!!

[India101]

Originally Posted by rick39

Well i think they have pulled out from this project ... what you guys think ...ummmm

Eh we'll give it some time. Though there hasn't been much good news about this.

[GJ10]

Dude... read the article... its been shelved!

[Jai]

Thank the economic crisis for this...

Let's hope when the economy corrects itself soon