GE Financial debuts with Binani project

Lends Rs 75 crore for power unit.

US-based GE Energy Financial Services will set up office in India later this year as part of its global expansion and has already made its first investment in a captive power plant being set up by Binani Cement.

The General Electric unit will be lending Rs 75 crore for the construction of a 22.3-megawatt thermal power plant and associated common utilities in Sirohi in Rajasthan.

This is part of the power major's move to generate more of its earnings from outside the US, by tapping into fast growing economies.

GE's financial services arm, GE Energy Financial Services, has invested around $1 billion in emerging markets over the last 10 years.

According to Alex Urquhart, president and CEO of GE Energy Financial Services, "India is a launching pad for our global growth, a platform to expand and serve customers in other key markets such as the Middle East and East Asia."

GE Energy Financial Services began its India operations last year and will open its first office in Delhi during the second quarter of this year to finance energy and water projects. Raghuveer Kurada, an energy investment professional, will head the India office.

The managing director and head of global growth at GE Energy Financial Services, Colleen Harkness, said, "For Binani, the power plant we're helping finance will cut costs by nearly $4 million annually and provide a highly reliable electricity source.

"For GE, this sets the stage for our growth in India through investments in power projects addressing India's growing industrial power requirements, including in the cement and steel industries, as well as in renewable energy, electric transmission and water."

It is estimated that India needs more than 100 gigawatts of electric power, which would require investments of around $200 billion, including transmission and distribution.