DLF has said that they haven’t withdrawn from the Dankuni project (Rs 50bn project) but due to the economic downturn they have asked the refund back (Rs 2.7bn)and will again consider taking the project once the land is handed over by the state government. We believe that Dankuni project is 182.5mn sq ft with DLF’s share at 91.2mn sq ft. We believe that the total land bank of the DLF which stands at 750mn sq ft will be reduced by 91mn sq ft, hence will stand at 659mn sq ft. Unitech too is likely to follow the same route as it holds the other half.
We believe that at this point of time any cash inflow is positive for the company as dankuni is a long gestation project and handing over the land would have difficult to DLF at this point of time.