Realty firm Modern India today said it has initiated dialogue with private equity firms to raise Rs 150 crore for part-funding the proposed IT/ITeS Special Export Zone at Khopoli in Maharashtra.

"We are talking to private equity players, both in India and abroad, to raise Rs 150 for developing the IT/ITeS SEZ at Khopoli," Modern India Chairman V K Jatia told PTI.

The deal is likely to be sealed within the next six months, he said, adding that the company might have to dilute up to 30-35 per cent stake in the project for raising the amount.

Modern India Property Developers, a company subsidiary, would develop the SEZ on 34 acres of land and proposed to invest around Rs 560 crore.

"We are awaiting the notification from the Board of Approval.Apart from that, all other formalities, including the acquisition of land are in place," Jatia said.

The funding of the SEZ would be done at a debt-equity ratio of 2:1. Three PSU banks have committed extending Rs 100 crore each as loan for the development of the project, he said.

Modern India would bring in the remaining equity from internal accruals, he said.

Jatia said that the work on the SEZ was expected to start in around six months from now and would take two to two and a half years to complete.