During Prime Minister Narendra Modi’s visit to Japan, GMR Infrastructure signed a memorandum of understanding to provide financial assistance to Japanese companies investing in infrastructure projects of the GMR Group.
Joint effort According to a statement, the objective of this MoU is to provide low-cost, long-term financing for infrastructure projects that involve Japanese companies. These could be for the development of industrial parks, power, energy, ports, airports, highways and railway projects.
The Japan Bank for International Cooperation (JBIC), through this association, intends to promote opportunities for Japanese companies to participate in infrastructure projects and also support them to lay a foundation in India.
Over the next 12 months, GMR and JBIC will work on identifying projects to attract Japanese investments.
BVN Rao, Business Chairman, Urban-Infrastructure and Highways, GMR, who signed the MoU on behalf of GMR Infrastructure in Tokyo, said: “It is a landmark event and the first deal 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.”
Role expansion The diversified GMR Group is engaged in the development of infrastucture projects in the public-private partnership mode. And in a sector, which requires a lot of funds, investing in such projects could be attractive to Japanese companies seeking to expand their role in India.
This is also seen to help those looking to create export-oriented manufacturing facilities aimed at the growing markets of Africa. According to the 12th Plan estimates, India requires investment of over $1 trillion in the infrastructure sector.