In an attempt to start new infrastructure projects in India, Delhi-based realty company Parsvnath Developers, has finalized a tie-up with Constructora San Jose, a unit of Spain's infrastructure development company Grupo San Jose. Parsvnath and San Jose would hold equal equity in the joint venture company San Jose-Parsvnath Consortium.

The JV would bid for projects in transportation, aviation, power generation and transmission among others. Parsvnath Developers Chairman, Pradeep Jain said, “We want to undertake large construction projects since the infrastructure sector is growing rapidly. It is a value addition for our existing business.”

The joint venture company has qualified to bid for an upcoming project to build an elevated expressway at a contract value of 12.2 billion rupees in southern India,

Jain denied that moving into infrastructure is due to a slowdown in real estate sector. He revealed that the consortium has submitted a request for qualification (RFQ) to National Highways Authority of India (NHAI) and has been qualified to submit the financial bids for construction of elevated expressway on NH-4, which has the contract value of Rs 1,220 crore.

However, an analyst from Mumbai-based brokerage stated, the JV may not start generating revenues immediately as there are no new infrastructure projects announced by the government. “Apart from having a technical support in the long run, the JV will not have an impact on the financials of the company.... Getting funding will be challenging in the current scenario.”

Many realty companies such as DLF, Unitech, Anant Raj Industries and HDIL are already active in the infrastructure space. DLF has tied up with UK based company LangO’Rourke, for construction projects.

Parsvnath is also growing its operations in hospitality, retail and SEZs among others. The company is developing 211.32 million square feet of space across the country. The firm’s stock fell as much as 5 per cent to close at Rs 38.95 today.