IL&FS Group inks pacts with ICBC and China Huaneng Group
16 May 2015
Infrastructure Leasing & Financial Services Limited (IL&FS) Group, India's leading infrastructure development & financial services conglomerate today entered into MuUs with Industrial and Commercial Bank of China (ICBC), a prestigious commercial bank in the People's Republic of China and the China Huaneng Group, the largest state-owned power producer of China.
The MoU between ICBC group and IL&FS group facilitates co-operation in the area of infrastructure financing in India.
ICBC group will consider providing financial support of upto $1 billion equivalent to the IL&FS group. These funds will be used for infrastructure development requirements and related investments of the group.
The other MoU between IL&FS Energy Development Company Limited (IEDCL), an IL&FS Group Company and the China Huaneng Group, Huabei Branch aims to jointly develop, implement and operate a 3,960 MW coal-based coastal power project in the Kutch district of Gujarat State in India.
The thermal power project is a part of Special Economy Zone (SEZ), being developed by IL&FS Group, and has achieved significant level of project development including acquisition of land, statutory clearances and recommendation of Ministry of Environment & Forest (MoEF) for grant of Environment Clearance.
The MOUs signed as part of the visit of the Prime Minister Narendra Modi to People's Republic of China, signify an increased collaboration between the two countries.
Speaking in Shanghai to commemorate the event, Ramesh Bawa, managing director and CEO, IL&FS, said, ''The spirit of cooperation between the two countries has not only meant that a defined development path can be put in place for the strategic objective of supporting infrastructure development, but it also provides a clear signal to the international community, of India's growing attraction as an investment destination''. He further noted that this was a 'momentous occasion' for IL&FS and hoped for enlarged cooperation in the future with Chinese companies.