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GMR Infra inks landmark deal with Japanese bank
Under the pact, Japan Bank for International Cooperation will provide financial assistance to Japanese companies that invest in GMR’s projects in India
Under the pact, Japan Bank for International Cooperation will provide financial assistance to Japanese companies that invest in GMR’s projects in India
Hyderabad: In a landmark development, GMR Infrastructure Limited has on Tuesday inked a Memorandum of Understanding (MoU) with Japan Bank for International Cooperation (JBIC) for extending financial assistance to Japanese companies that invest in infrastructure projects of the GMR Group.
The infrastructure major signed the pact with JBIC as a part of official visit of Prime Minister Narendra Modi to Japan, which is currently underway. This is first time that a bilateral agency like JBIC signed such a deal with a private company.
“The objective of this MoU is to provide low-cost long-duration financing for infrastructure development projects that involve Japanese companies in development of industrial parks, power, energy, ports, airports, highways and railway projects,” GMR said in a release.
Through this agreement, JBIC intends to promote opportunities for Japanese companies to participate in infrastructure projects.
“This will serve to improve infrastructure in India and support development of the necessary foundation for Japanese companies’ business activities in India,” it added. Over the next one year, GMR and JBIC will identify projects in which Japanese companies will invest. "It is a landmark event and the first that any bilateral agency has made with a company in the private sector. It is a manifestation of the belief that an international agency like JBIC has in the delivery capabilities of the GMR Group,” said B V N Rao, the company’s Business Chairman, Urban Infrastructure & Highways who signed the MoU on behalf of GMR Infrastructure in Tokyo.
During the current 12th five-year plan period (2012-2017), there is a requirement for investment of about $1 trillion in the infrastructure sector in India and private sector investment is expected to play an important role in the field. The GMR Group is known for operating projects in the Public-Private Partnership (PPP) mode in complex environments, adopting world class technology, delivering projects well within time with a focus on operational efficiency.
“Investing in such projects can be very attractive to Japanese companies seeking to expand their manufacturing activities in the vast captive market of India as well as for those looking to create export oriented manufacturing facilities aimed at the growing markets of Africa,” the release added.
