Tata Sons has planned to invest ₹975 crore in Pune IT City Metro Rail, a special purpose vehicle that has secured the contract to construct, operate, and maintain the project connecting Shivaji Nagar and Hinjewadi. The Tatas own a 74 per cent stake in the SPV; the rest is owned by Siemens Project Ventures. The ₹7,420-crore, 23-km long project is being financed through debt-to-equity of 1.8 times and the entire debt has been tied up, and the envisaged equity commitment is supported by Tata Sons. The Pune metro rail is being developed by the Maharashtra and Union governments, with a 50 per cent stake each. Tata Realty and Infrastructure (TRIL), a subsidiary of Tata Sons, is making the investment in the metro rail SPV and is likely to raise additional debt for these projects, apart from investing its own cash, which is expected to flow in as dividend income in the current financial year. TRIL is expecting a boom in the infrastructure sector mainly due to the Indian government’s increased impetus on infrastructure development, especially under the Parvatmala initiative for rope ways.
