Srei International Finance (Srei) has launched India's first infrastructure equipment bank, Quipo, to provide equipment (including for construction) on rental basis along with value added services such as technicians for operation and maintenance.
Sectors to be serviced include construction, roads and highways, irrigation, mining and ports. The company shall have a countrywide network of stockyards to service customers.
This is the first phase of the project and the cost of Rs 168 crore has been financed through Rs 50 crore equity, quasi equity of Rs 23 crore and Rs 95 crore of debt. Of the issued equity, 48 per cent has been picked up by foreign financial institutions and overseas body corporates.
The rest has been issued to the sponsors, Srei, IFC - Washington (a World Bank affiliate), the Netherlands government promoted body FMO, the German government owned institution DEG and Infrastructure Development Corporation Ltd (IDFC).
Sunil Kanoria, company chairman and managing director, "Investments made by leading foreign financial institutions in the project shows uniqueness and viability of the project. The company is now poised to provide multipurpose equipment on rent to the infrastructure industry with special focus on construction and roads and highways sectors".
The bank will provide equipment on rental to medium and small contractors to access latest technology. Higher mechanization through equipment rental is expected to improve project management.
Though there are few projects in the infrastructure sector with direct foreign investment, by subscribing to 48 per cent of equity, foreign investors have highlighted the need to have an infrastructure equipment bank in the country.
Quipo has already deployed about Rs. 27 crore of equipment at various sites around the country. Subrata Paul has been appointed president & CEO. The company has also done its first banking deal by deploying idle equipment from a contractor at another project site.
