Megasoft Update On The IT Facility Project In Telangana
Megasoft Limited had announced that it is in the process of setting up a large IT facility in its property at Nanakramguda, Hyderabad ( which was registered in the company's favour in May 2015 by TSIIC through conditional sale deed) with a new developer (shareholder's approval through a postal ballot was obtained dated March 22, 2016). Subsequently on 12 March 2018, the Company had announced that the company had filed for necessary government approvals for its joint development agreement (JDA) with the Salarpuria Sattva group. The company has received a conditional approval for this JDA from the government of Telangana /Telangana State Industrial Infrastructure Corporation (TSIIC). Accordingly, as per the terms and conditions approved, the company has now finalized its JDA with the Salarpuria Sattva' group and will receive & retain approximately 5 lakhs square feet as its net share (depending upon final FSI and municipal clearances) of the to-be-constructed property.
Assuming no project delays, the company's share of SFT is expected to accrue in three phases, starting from the end of the year 2018 and finishing by mid of 2021. The proceeds of the same will help the company reduce /pay off its consolidated debts. As announced in the above notification, the first phase of the project is nearing completion as per schedule and company for its Net Share of 65000 SFT in this phase, has successfully concluded a lease rental agreement. The lease rental revenues are expected to accrue starting from the First Quarter (better January & March) of 2019 and as per terms agreed with the Company's Bankers, the proceeds will be entirely used to reduce the Consolidated Bank debts in the books of the company.