Rakindo Developers’ FDI Proposal for Coimbatore Township Awaits Cabinet Nod
Chennai-based real estate developer Rakindo Developers is on the cusp of receiving Cabinet clearance for its proposal to establish a wholly owned subsidiary with a substantial $250-million Foreign Direct Investment (FDI) from Dubai-based Rakeen Development. This significant development is anticipated to materialize on Thursday.
Project Overview
- Location: Coimbatore
- Project Value: $1.5 billion (approximately Rs 6,000 crore)
- Land Area: Over 1,000 acres
- Central Attraction: 18-hole golf course
- Project Components:
- Residential Complexes
- Commercial Complexes
- IT SEZ
- Specialty Hospital
Corporate Structure
Rakindo Developers, a joint venture between Rakeen Development (a joint stock global business company promoted by the Ras Al Khaimah group, UAE) and the Chennai-based mineral conglomerate Trimex Group (owned by Koneru Prasad), is proposed to serve as a holding company. This structure will facilitate investments in several Special Purpose Vehicles (SPVs) dedicated to developing and operating townships.
Regulatory Approvals
- FIPB Approval: Already obtained for investing in and holding downstream investments in companies formed for the Coimbatore project.
- Ministerial Approvals: Received from various ministries, including:
- Department of Industrial Policy and Promotion
- Department of Economic Affairs
- Ministry of Urban Development
Project Concept
The Coimbatore project is built around the innovative concept of “walk to work culture,” designed to offer a holistic, self-sustaining ecosystem.
Additional Proposal Under Consideration
The Cabinet Committee on Economic Affairs (CCEA) will also review another significant proposal by Essar Power Ltd, Mumbai, seeking FIPB approval to operate as a holding company.