)
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. The MoU will serve to improve infrastructure in India and support development of the necessary foundation for Japanese companies' business activities in India. Over the next 12 months, GMR and JBIC will work on identifying projects to attract Japanese investments.
BVN Rao, Business Chairman - Urban Infrastructure & Highways who signed the MoU on behalf of GMR Infrastructure in Tokyo said, "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. " A statement from GMR further added that investing in such projects can be 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.
GMR is in the process of developing a 4300 acres Special Investment Region at Krishnagiri on the Bangalore - Chennai corridor, which will cater to the needs of manufacturing services and commercial activities and will also offer residential and social infrastructure. This development will have dedicated Electronic Manufacturing Zone, Automotive and Auto ancillary Zone, Precision Engineering Zone and Aerospace and Defence Zone. Apart from being an industrial plotted land, this development will offer integrated infrastructure, including built up spaces for factories, social infrastructure, along with digital infrastructure.
It is estimated that there is a requirement for investment of about $1 trillion in the infrastructure sector in India during the current 12th five-year plan period (2012 to 2017) and private sector investment is expected to play an important role in the field.
