IDFC seeks new avenues for growth

Financial institution, Infrastructure Development Finance Corporation Ltd (IDFC) is looking at Rs. 100 crore funding in the Rs. 5,000 crore Positra special economic zone (SEZ) to come up in Gujarat. Incidentally, IDFC is rendering its advisory services for the project.

"This SEZ will show case to the world what Indians could do given equal opportunities," says Mr. Nasser Munjee, managing director and chief executive officer. According to him the country should first look at the performance of one SEZ and later decide on setting up in other areas. "The ultimate goal should make the entire country a SEZ," he remarks.

High hopes aside, IDFC has received a loan proposal from Agrani Satellite Services Ltd, part of Mr. Subash Chandra group that is promoting the Agrani satellite project. IFCI, it is reported is processing another Rs. 30 crore proposal from the satellite company.

The Rs. 1, 150 crore project has a debt component of
Rs. 690 crore. It is also reported that Agrani Satellite Services has raised Rs. 380 crore of that IDBI and SIDBI have also given their in principle sanctions to the tune of Rs. 300 crore and Rs. 50 crore respectively. End 2002 is when the satellite is
expected to go up.

"We have received the loan proposal from the company and our board has to consider the same. We are yet to take a decision on that," says Mr. Munjee without divulging the amount sought by the satellite company from IDFC.

For IDFC telecom is becoming a major portfolio. During
2000-2001 the company had approved financial assistance of Rs. 860 crore to seven projects (6 new and 1 existing) as compared to Rs. 500 crore to three projects the previous year. In addition IDFC has given performance and financial bank guarantees of Rs. 800 core to one new project and one existing project.

Disbursement also kept pace at Rs. 494 crore to three projects viz Hughes Telecommunications (India) Ltd, Bharti Mobile and Asian Telephone Services (the special purpose vehicle of Birla, AT & T and Tata Cellular Ltd).

Other telecom projects that got IDFC’s approval are Fascel Ltd, Aircel, Delta Innovative Enterprises Ltd and BPL Cellular Ltd.