IDFC planning logistics chain, seeking partners
07 Jul 2008
New Delhi: Infrastructure Development and Finance Corporation (IDFC) Projects has set its sights on developing a pan-India logistics chain for building industry-specific and customised facilities, and is on the look out for partners with strong financials and global expertise in the sector.
IDFC is seeking to venture into urban transport projects, such as mono-rail and light rail transit system (LRT), and is in the process of listing its $1.25-billion fund for infrastructure projects.
According to a report, IDFC, along with a global logistics and urban transport, IDFC plans to create global scale facilities, for which IDFC has the resources. Other areas into which IDFC is planning an entry in to solid waste management and water supply solutions.
IDFC has invested in two logistics firms over the last past two years, through a $25-million investment in the Chennai-based Sical Logistics, and a 22-per cent stake in Hyderabad-based Seaways Shipping for Rs120 crore in June this year. These would enable the infrastructure finance firm to build a pan-India network of supply chain solutions.
For its water supply management projects, IDFC is a partner in consortium with Jamshedpur Utilities and Services Company and Malaysia-based Ranhill, and has been awarded a contract by the Haldia Development Authority (HDA) in West Bengal for doubling capacity and the maintenance of the existing water treatment plant. The consortium is reported to be investing around Rs90 crore in upgrading the plant.
IDFC is reported to be planning to borrow around Rs2,500 crore by selling 3-year and 5-year bonds. It is already said to have created funds valued at $12,500 crore for investment in infrastructure projects such as ports, roads, airports and oil and gas pipelines.
It recently tied up with Dubai Ports World (DP World) for the development of the Ennore port container terminal, in 51:49 partnership. IDFC has also committed $522 million for the India Infrastructure Fund (IIF), and had announced a $5 billion fund to finance infrastructure projects in India last year, in association with India Infrastructure Finance Company (IIFCL), Citi Group and private equity firm Blackstone.
