Country's largest realty firm DLF, which has tied up with Dubai-based developer Limitless for developing Rs 60,000-crore (Rs 600 billion) township in Bangalore, has sought government approval for bringing in foreign direct investments worth $ 150 million.
Official sources said the issue would be taken by the Foreign Investment Promotion Board (FIPB) on Friday, adding it is likely to get approval.
However, the foreign investment proposal would be given the final clearance by Finance Minister P Chidambaram, after the Board's recommendation.
Limitless, a part of Dubai World Company, will initially bring $ 150 million as equity to part finance the project, market sources said.
DLF plans to develop a huge integrated township spread over 9,178 acre on the outskirts of Bangalore at an estimated investment of up to Rs 60,000 crore (Rs 600 billion) over the next seven years.
The Karnataka government awarded the project to develop Bidadi Knowledge City to DLF in October last year. The realty firm would develop the project in a 50:50 joint venture with Limitless.
Total cost of the project is estimated at between Rs 50,000 crore and 60,000 crore (Rs 500-600 billion), including Rs 3,600 crore (Rs 36 billion) for land.
The investment would come from internal resources of the two partners and private equity at the project level. The project was awarded to DLF, following a global tender issued by the Bangalore Metropolitan Regional Development Authority (BMRDA).
The township, which would be positioned as New Bangalore, will be developed at about 30 km from the city of Bangalore and 15 km from Mysore.