Parsvnath Developers has entered into joint venture with Spanish construction company Constructora San Jose SA to capture the infrastructure sector. Under the new agreement both the companies will hold equal stakes in the joint venture company San Jose-Parsvnath Consortium. The JV company will undertake projects on transportation, aviation, power generation and transmission. The bidding for these projects will soon be announced by the consortium.

 

According to the chairman of the Parsvnath Developers, Pradeep Jain, the high growth rate of infrastructure sector has opened up prospective business opportunities.  So by foraying into infrastructure sector the company is trying to gain maximum profit.  He added that company is planning to undertake large construction projects. When asked about the impact of global economic slow down on the company, the chairman insisted not to make out the assumption that the JV move is taken to combat economic crisis.

 

Report says that National Highways Authority of India (NHAI) has approved the financial bids of the consortium for construction of elevated expressway on NH-4, which has the contract value of Rs 1,220 crore. According to experts, the JV will not be able to generate profit immediately as the government of India has not announced any new infrastructure projects.