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Tata, HLL plan multi-billion complex in Kochi

Tata Housing Development Company Ltd, a joint venture between the Tatas and Hindustan Lever Ltd, has proposed a Rs 5 billion commercial-cum-residential complex with a World Trade Centre and a five-star hotel at Kochi, hub of the new spices futures trading in India.

The complex, to be set up as per international standards, will come up on 35 acres of land HLL owns at Tatapuram, close to Marine Drive.

The commercial complex is proposed to be established over 100,000 sq ft, and will, besides WTC and the hotel, also have commercial space comprising business offices, shopping mall and a science park.

The real estate major which has already taken up similar projects at Bombay, Delhi, Bangalore and Goa sees tremendous potential for the project in the state.

The strengths perceived by the company in Kerala are agro-climatic conditions suitable for plantation crops with large export potential, enchanting beauty of the land and scenic attractions for tourism development, large pool of skilled, educated work force with high absorption capabilities, low overheads on scientific and managerial talents as compared to other states, an extensive infrastructure network like rail, roads, air and waterways, high standard of quality of life, large amount of investible funds with financial institutions, large consumption expenditure supported by overseas remittances and low cost of power as compared to other states.

The promoters found Kochi the ideal city for locating the complex as it not only occupies prime position in the gross domestic product of the state but also has excellent linkages -- port, industrial, agricultural and financial. They see tremendous possibility for integrating the World Trade Centre with international centres.

The tourism potential of Kochi holds another attraction. The commissioning of the Nedumbasserry international airport is expected to give further impetus to tourism. Therefore, the promoters propose to synergise the star hotel in the complex with the tourism promotion efforts of the state.

The target group sought by the company for investment in both the commercial and residential complex are non-resident Indians, who have investible surplus with them.

The final project report prepared by the Tata Economic Consultancy Services has assumed that 60 per cent of the people opting for the residential area will come from the Gulf.

The market survey commissioned by the company has found that the incomes of the target households in Kochi was Rs 40-60,000 per month, while in the case of those from the Gulf it was Rs 120,000 to Rs 140,000 per month.

The study has assumed that the monthly expenditure of those who come from the Gulf would Rs 50,000 per month.

The study has estimated direct, indirect and multiple benefits of the project to touch Rs 21 billion by the year 2012-13. It has also estimated that the complex would account for 3.75 per cent of Ernakulam district's domestic product and 0.85 per cent of Kerala's GDP.

The promoters hope that when complete, the project will be a landmark in Kochi, and will set standards for other developers to emulate.

However, the government agencies, which are required to give the necessary clearances for the project, do not seem to share the rosy vision.

The project reports -- including the final reports on the economic benefits undertaken by the A F Ferguson and Co - which were submitted to the Greater Cochin Development Authority, under whose jurisdiction the complex comes, have been hanging fire for some time now.

In fact, the bureaucratic cold-shoulder has forced WTC India Ltd to take up the WTC at Bangalore ahead of Kochi. The company has reportedly launched the project at Mahadevapura near Whitefield in Bangalore.

This has also fuelled apprehension among employees of the Tata Oil Mills Company, whose surplus property is sought to be used for locating the commercial-cum-housing complex. The property has gone to the possession of Hindustan Lever after it took over Tomco a couple of years ago. The Tomco employees are apparently worried over rumours that HLL was planning to close down the unit.

HLL, after taking over the company, had stopped production of several brands leading to substantial retrenchment of the workforce. HLL sources, however, have denied moves to close down the unit.