Tata Sons, the Tata group's holding company, is investing Rs 9.75 billion in Pune IT City Metro Rail, a special purpose vehicle that has won the contract to build, operate, and maintain the city's project connecting Shivaji Nagar and Hinjewadi. The Tatas own 74% of the SPV, with Siemens Project Ventures owning the remainder. According to a banking source, the Rs 74.2-bilion, 23-km project is being financed with a debt-to-equity ratio of 1.8 times, and the entire debt has been tied up, with Tata Sons supporting the proposed equity commitment. The Maharashtra and Union governments each have a 50% stake in the Pune metro rail project. Tata Realty and Infrastructure (TRIL), a Tata Sons subsidiary, is investing in the metro rail SPV. TRIL intends to sell recently completed road and ropeway projects in order to raise funds and pay off its own debt. According to bankers, Tata Sons is focusing on increasing the contribution of its digital, electronics, and aviation businesses to the group's profitability, and some entities, such as the Pune metro SPV, may require Tata Sons funding as growth capital because TRIL is focusing on debt retirement. Apart from investing its own cash, which is expected to flow in as dividend income in the current fiscal year, Tata Sons is likely to raise additional debt for these projects. Tata Sons, which had a standalone debt of Rs 300 billion in March of this year, intends to raise funds through the issuance of non-convertible debentures. Tata Sons is also considering listing its satellite TV broadcasting arm, Tata Play, in order to raise approximately Rs 32 billion. Tata Sons also owns stakes in profitable insurance companies and may consider selling a portion of their stakes to raise funds, the banker said. TRIL anticipates a boom in the infrastructure sector, owing primarily to the Indian government's increased emphasis on infrastructure development, particularly through the Parvatmala initiative for ropeways. See also: PM Modi inaugurates Pune Metro Rail project Maha Metro to develop Detailed Project Report for Pune metro extension