Mah'shtra, Gulf Fin ink MoU for $2bn Energy City

The Maharashtra government today inked an agreement with leading investment banker Gulf Finance House (GFH) for setting up a $2 billion integrated energy business district in the state.

Christened Energy City India, it is the second of the four such cities envisaged by GFH for a Pan-Asian network. The first Energy City, to be developed at an estimated cost of $2.6 billion, was announced in Qatar in March while the remaining two will be announced early next year.

The state will provide necessary hand-holding to GFH through fast-track clearances and other administrative support for setting up the facilty over 300 acres near Mumbai at an estimated cost of $2 billion.

State industries secretary V K Jairath and Esam Janahi, chief executive of GFH, signed the MoU in the presence of Chief Minister Vilasrao Deshmukh and Industries Minister Ashok Chavan.

The project will come up on a 300-acre plot near Mumbai. "We are assessing potential sites, and expect to conclude site acquisition very soon," Janahi said.

GFH will float an holding company to bring in the first phase of equity capital of $300-500 million through foreign direct investment (FDI) by year-end, he added.