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Gulf Finance signs deal for $10b India economic zone
Bahrain-based investment bank Gulf Finance House (GFH) said on Friday it had signed a deal with the western Indian state of Maharashtra to develop a $10 billion zone near Mumbai, its capital, that will attract companies in sectors such as energy and telecom.
- Staff Report
- Published: 10:21 December 14, 2007
Dubai: Bahrain-based investment bank Gulf Finance House (GFH) said on Friday it had signed a deal with the western Indian state of Maharashtra to develop a $10 billion zone near Mumbai, its capital, that will attract companies in sectors such as energy and telecom.
Spread over 1,600 acres alongside the expressway connecting Mumbai with the fast-developing city of Pune, the zone will include four key districts - Energy City India, Software City Mumbai, Telecom City Mumbai and Entertainment City Mumbai.
GFH said in a statement the zone is expected to attract an investment of more than $10 billion. The agreement comes a year after the company signed a deal with Maharashtra to develop the $2.8-billion Energy City India business park.
GFH floated a private placement initiative earlier this year that raised $630 million towards the first phase of its development. State chief minister Vilasrao Deshmukh said he welcomed the GFH initiative to enlarge the project's scope.
"The project will help in the establishment of a knowledge and creative zone near Mumbai and will result in a creation of large-scale jobs," he said. A booming Indian economy is creating demand for quality real estate and infrastructure projects.
India requires $500 billion to improve road, port, housing, railway, airport, electricity and telecommunications infrastructure over the next few years.
Big opportunities
"The opportunities that India offers within the infrastructure and its allied sectors, such as energy, software and telecommunications are tremendous," GFH chairman Esam Janahi said. GFH said these sectors have emerged as key drivers of the Indian economy.
"India is already one of the largest energy markets in the world with a rapidly rising consumption rate. Significant advances have been made in the areas of renewable and alternative energy sources, the development of energy-related technology platforms and research and development, all of which will find a natural home in Energy City India," GFH chief executive Peter Panayiotou said.
India is also one of the fastest growing telecom markets with about eight million phone connections being added every month.
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