It may well be the beginning of the execution of MoU signed at the Vibrant Gujarat Global Investor Summit 2009. The state government has allotted 750 acres of land to Anantraj Industries Ltd, a leading real estate and infrastructure development company, to develop an education city on Ahmedabad-Mehsana national highway, 90 km away from city.
Amit Sarin, executive director of Anantraj Industries, spoke to DNA about the company’s plans to develop the education city in the state.
Why is Anantraj Industries Ltd (AIL) is making a foray into the education sector? Why not in other sectors?
The growth prospects in the education sector and dearth of quality institutions in the country are the factors that inspired us to get into this industry. Our core objective is to provide best quality education and ours would be a first of its kind education hub in the country. Besides, Ahmedabad is one of the major metros in the country with the basic infrastructure required to support such a project. The cooperation from the state government has been excellent and we have been allotted a great location at Mehsana, just 90 km from Ahemdabad.
Has slowdown in real estate sector compelled AIL to change track?
It has nothing to do with the slowdown. The main aim is to provide quality education and at the same time creating infrastructure. Education industry has tremendous growth prospects and if worked out properly, it is also risk-free.
How will this education city be developed? What is the blueprint and cost of the project and how will the funds be raised?
The education city would be developed as a fully integrated self-sustained township. It will have campuses of some of the world’s leading colleges and universities as well as numerous education and research institutes. It has been envisaged as a community of 20 to 25 institutions imparting education to almost 30,000 students. It will provide all basic infrastructure facilities such as hostel, family accommodation, recreation, medical, shopping, commercial and business centres, food courts and logistics to all educational institutions in the city. The estimated cost of the project is around Rs3,500 crore. We have enough funds for the first phase. Since we are a zero debt company, raising funds won’t be an issue.
How much time will it take to complete the project?
Now that we have got the land, we expect to move at a much faster pace for negotiations with the potential institutes. This project would be carried out in phases and we intend to start this in next three months. The project will be completed in next five years.
You said the education city would comprise multiplexes and hotels. Do you really believe an educational township needs such establishments?
The concept of education city is new to India but is prevalent across the world. Education centres across the world have been set-up with the objective of putting these cities on the global map. The infrastructure development model followed in these cities includes shopping malls, restaurants, office complexes, stadium, residential colonies to accommodate people working/studying in these educational institutions. In fact, the economy of these cities is now dependent on the educational institutions running there.
Will it be a build-operate-transfer project or will AIL be involved in the functioning of the education city?
The project will be fully owned by Anantraj and allot space to various institutes on lease. Rest of the commercial space which are there for support of this education city to make it self sufficient would be run by Anant Raj.
What will be the quantum of employment generated through this project?
It is too early to give an exact number, but once the project is ready the quantum of employment would be huge. Around 30,000 students would be studying in various institutions, so the facilities have to match the requirements and it will create employment for many.
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