For its subsidiary Arihant Abode, the realty developer Arihant Superstructures has obtained construction finance worth Rs 250 cr from Housing Development Finance Corporation. The company intends to use the funds for its flagship housing project Arihant Aspire in Panvel near Mumbai, the company said in a regulatory filing. The project spread over 16.5 acre has total 3.1 mln sqft of saleable area under development.
“We have been able to reduce our secured debt in the last 1 year with prudent cash flow management. A number of our projects have reached maturity levels, throwing up positive cash flows, which are utilized to reduce project specific debt. The funding for the new projects would be a judicious blend of various instruments in the best interests of our stakeholders,” said Ashok Chhajer, CMD of Arihant Superstructures.
The plan is to develop the project in three phases the first of which is expected to be delivered over the next five years. Total tenure of the facility is also five years. The company has already obtained all the necessary approvals for the project started construction of the same. It has already sold around 300 apartments in this project.
This project, to be sold project under affordable housing policy, can qualify for tax exemption under Section 80 IB of Income tax Act, 1961 and subject to applicable rules and regulations of the said Act, the developer had said in an earlier statement.