IL&FS promises Rs 5,000cr for Bengal projects

West Bengal Industrial Development Corporation Ltd and Infrastructure Leasing & Financial Services Ltd (IL & FS) formed a joint venture company on Monday for a Rs 5,000 crore road and industrial infrastructure project in West Bengal.

The company will act as a holding outfit for different special purpose vehicles (SPV) to be floated in future for various projects.

The joint venture company will also work on the proposed chemical hub at Haldia.

West Bengal government has sought special economic zone status (SEZ) from the Union government for the chemical hub.

West Bengal's industry minister Nirupam Sen told reporters after the signing ceremony of the shareholders agreement with IL&FS that the joint venture will try to create necessary infrastructure for speedy industrial growth in the state.

Praising the role of IL&FS in development of the state, Sen said that the financial institution has helped the state government in preparing the presentation for the chemical hub at Haldia.

"The state has given the report to the Union ministry of chemical and fertilizers for the chemical hub in the first week of May 2005. The state has also lined up around Rs 50 crore for the project," he said.

According to him, all the big companies present in Haldia were present during the presentation.

"The representatives of HPL, Mitsubishi and IOC were present during the presentation. The state government is expecting a reply from the Union government shortly," he said.

Sen indicated that other states like Gujarat is also in the race for SEZ status of their chemical hub.

The chairman and managing director of IL&FS, Ravi Parthasarathy, said the JV company will take up projects worth Rs 5,000 crore.

These included the proposed eastern link highway to connect NH34 and NH117 east of Kolkata, along with selected IT, biotech and financial knowledge parks near Rajarhat, a health city near Kolkata and a new agro-business cum border trade park at Siliguri in northern Bengal.

"There may be separate SPVs for each projects and the JV with WBIDC will act as a holding company," he said.

According to Parthasarathy, the eastern link expressway alone would require an investment of Rs 1,500 crore.

"Pre-feasibility study for the road project has been completed. Besides, the Rajarhat project will also require big funds as it will be spread over 500 acres. Cheap funds will be raised from the market for these projects," added the CMD of IL&FS.