L&T chooses city for its first commercial centre in India

Construction firm Larsen & Toubro (L&T) is venturing into its first commercial project in the country here in Chandigarh. In a city where commercial space comes at a premium, the firm has proposed to set up a five star hotel, malls and business towers on 20 acres along NH-21, close to the upcoming international airport in Chandigarh.

Though the firm had undertaken a few townships and IT park project in the past, the upcoming project is a pioneer effort to move into development of commercial space. The Chandigarh project, being undertaken by one of the subsidiaries of L&T, is expected to entail an investment of over Rs 300 crore.

The firm that has made most out of the conversion policy floated by the UT Administration now has one of the largest chunks of land to be developed as commercial space in Chandigarh.

Property experts feel the company has paid a handsome price for the stretch of land that is strategically located in the city, coming up as a service sector hub. “The conversion charges alone has incurred a cost of over Rs 180 crore,” an L & T executive said.

The price of commercial properties has jacked up by 50 per cent in the last one year as more and more brands and retail chains are seeking space in the city. Out of the other 26 proposals for conversion with the UT Administration, L&T would develop half of the total 40 acre proposed under the policy, sources in the administration told Newsline. Most of the other proposals involve less than an acre that are allowed to convert into restaurants, banks, offices, hospitals and training institutes, sources said.

The UT Administration has already initiated the widening and strengthening of roads in Phase I and Phase II to smoothen the implementation of conversion policy.

Source : Express India