GMR Infrastructure signs MoU with Japan Bank For International Cooperation (JBIC)
- GMR Group - GMR Infrastructure
- Japan Bank for International Cooperation (JBIC)
GMR Infrastructure Limited has signed a Memorandum of Understanding (MoU) on 2nd Sept, 2014, with Japan Bank for International Cooperation (JBIC) for providing financial assistance to Japanese companies investing in Infrastructure projects of GMR Group.
The MoU was signed during the course of the state visit of the Prime Minister of India Mr. Narendra Modi's to Japan,
The objective of this MOU is to provide low cost long duration financing for infrastructure development projects that involve Japanese companies in development of industrial parks, power, energy, ports, airports, highways and railway projects.
Through a framework of this MOU between JBIC and GMR, JBIC intends to promote opportunities for Japanese companies to participate in infrastructure projects. This will serve to improve infrastructure in India and support development of the necessary foundation for Japanese companies' business activities in India. Over the next 12 months, GMR and JBIC will work on identifying projects to attract Japanese investments.
Speaking on the occasion Mr. BVN Rao, Business Chairman- Urban Infrastructure & Highways who signed the MoU on behalf of GMR Infrastructure Limited in Tokyo stated:
It is a landmark event and the first that any bilateral agency has made with a Company in the private sector. It is a manifestation of the belief that an international agency like JBIC has in the delivery capabilities of the GMR Group
The GMR Group is known for operating projects in the Public-Private Partnership mode in complex environments, adopting world class technology, delivering projects well within time with a focus on operational efficiency. Investing in such projects can be very attractive to Japanese companies seeking to expand their manufacturing activities in the vast captive market of India as well as for those looking to create export oriented manufacturing facilities aimed at the growing markets of Africa.
It is estimated that there is a requirement for investment of about US$1 trillion in the infrastructure sector in India during the current 12th five-year plan period (2012 to 2017) and private sector investment is expected to play an important role in the field.