Bata India Limited will receive Rs100 crore in upfront cash payment in consideration of restructuring of its agreement with Calcutta Metropolitan Group Ltd (CMGL) in its 50:50 joint venture.
Bata India will receive the aggregate upfront payment for transfer of development rights and in consideration of future transfer of shares in the JV company, the company said in a release.
Under the agreement signed on 28 April, the company will also receive 640,000 square feet of constructed space free of cost in the project over a defined period of time.
Bata India will retain the legal title over the land at Batanagar modern integrated township project and shares in the JV company, Riverbank Developers Private Limited (RDPL), even as the agreement stands restructured.
Bata India Ltd. (BIL) set up the joint venture company with Calcutta Metropolitan Group Ltd (CMGL) in 2005. The objective of the JV was to create an integrated township that will serve as an economic catalyst in the region. This development is intended to not only benefit the community within the development, but also accelerate the economic development in the neighbouring areas.
The development of the township would economically benefit the larger community of the Mahestala area, by providing, inter alia, employment opportunities and social infrastructure such as health care services, schools etc. Apart from this, a comprehensive development plan to upgrade the overall infrastructure for the entire Mahestala area has been prepared by CEPT University, Ahmedabad, a premier urban planning institute, to assist the municipality and the state government.