* Lavasa to be restructured- Gulabchand
* HCC in talks with Abu Dhabi developer
* Bhutan interested in Lavasa model
By Henry Foy and Matthias Williams
MUMBAI, Nov 13 Hindustan Construction
Company, one of India's largest builders, will revamp
the financial structure of its Lavasa arm and decide whether to
revive plans for an IPO after the unit won environmental
clearance last week to resume construction after a year's delay,
its chairman said.
Lavasa, a $31 billion township in India's western hills, was
ordered to stop construction 12 months ago due to government
wrangling over green laws. The delay cost Hindustan Construction
$400,000 a day and forced the firm to abandon plans for an
initial public offering for the project.
"We must now restructure the whole financial structure of
the project," Ajit Gulabchand told Reuters in an interview on
Sunday on the sidelines of a World Economic Forum event in
"It's a one-year delay which has added extra costs, so we
will have to look at that," he said.
India's environment ministry on Wednesday gave conditional
clearance to the Lavasa project, ending a long-running dispute.
That and other stalled projects in Asia's third largest-economy
have spooked investors and hurt business confidence in the
"We will get things back on track, and then look at the
long-term picture a little later ... we're focused on the next
90 days to get (construction) moving," said Gulabchand.
The Lavasa project was roughly one-third built when
construction was ordered to be halted.
Gulabchand also said Hindustan Construction (HCC) is in
talks with an unnamed construction firm in Abu Dhabi to form an
association with Steiner, a Swiss developer it bought a
controlling interest in last year.
Gulabchand is also in talks with Bhutan to bring the Lavasa
township model to the reclusive Himalayan kingdom, he said.
"They want to exploit the green aspect," he said.
"They don't want to exploit their minerals, but tourism
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($1 = 50.125 Indian Rupees)
(Editing by Tony Munroe)