IDFC to help states sell tourism projects

Institution to invest aggressively in infrastructure

With the tourism sector gaining momentum in the country, Infrastructure Development Finance Company Ltd (IDFC), is devising strategy to give a facelift to the state government owned tourism properties across India.

It will aggressively invest in tourism infrastructure and will also bring in private parties into the sector.

A portion of the IPO proceeds is likely to be spend on the tourism infrastructure development.

The senior director for business development of IDFC, Anupam Srivastava, said the institution would approach all the state governments for possible sale as well as joint ventures for the tourism properties under state government ownership.

According to Srivastava, IDFC was giving a special thrust to tourism related infrastructure and aviation.

"IDFC intends to explore opportunities through the public-private partnership (PPP) framework for state-owned tourist accommodation facilities. There is huge scope in this area in the eastern region," he said.

The CEO and managing director of IDFC, Rajiv B Lall, had said some time ago that IDFC has already forwarded a proposal to the Aman group to set up a five star resort in Sikkim.

"If a suitable spot can be identified, the Aman group is likely to come forward," Lall had said then.

Cherian Thomas, director, advisory, of the company said, "We will soon start dialogue for acquisition of tourism properties."

According to Srivastava, IDFC was looking at tourism opportunities related to the golden quadrilateral highway programme and the development of convention facilities in large cities along with properties in other tourist destinations.

"IDFC believes large investment opportunities exist in the mid-price accommodation category in primary as well as secondary metropolitan centres in the country. Tourism sector is likely to grow at a annual rate of 8.8 per cent till 2014 and there will be significant opportunities," he added.

Srivastava was in Kolkata to market the 40.3 crore share IPO of IDFC Ltd.

The company was offering shares at a price band of Rs 29-34, out of which 12 crore shares will be fresh issue.

Existing stakeholders of IDFC, including the government, would be offloading a portion of its stake in the outfit on pro rata basis.

The company expected to raise between Rs 1170 crore to Rs 1370 crore from the IPO.