HCC's rating is further constrained by the company's aggressive plans in the real estate sector, in addition to its ongoing Lavassa Township project (Lavassa). The company has drawn up plans to acquire around 1,500 acres of land for its real estate venture, through its wholly-owned subsidiaryHCC Real Estate Ltd (HREL). Fitch notes that this acquisition will be debt-led (with support from HCC ), although the exact quantum of support is difficult to ascertain. The timelines for the execution of Lavassa have been crunched, resulting in greater-than-expected debt financing for the accelerated investment.HCC will have to support around 32% of the total project debt of INR5bn, estimated at INR1.5bn. At the same time, the government has removed certain tax benefits for construction companies with retrospective effect from 1 April 2007. As a result,HCC paid INR341m in FY07 for previous years' taxes as a one-time payment. This rule will also reduce the company's net margins in future.Moneycontrol India :: News :: Fitch affirms HCC's CP/STD programme :: Hindustan Construction Company :: Press- Market :: Fitch Ratings,Hindustan Construction Company,construction,order
real estateHCC Real Estate Ltd (HREL) commercial paper Lavassa Township Project Walchand-Hirachand Group Construction Company Investment Pune News Pune Real Estate Ravi Karandeekar
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