With Prime Minister Narendra Modi on a visit to China, infrastructure development and finance firm IL&FS said it had signed agreements with two Chinese companies, Industrial and Commercial Bank of China and power producer Huadian for its projects.
CNBC-TV18’s Shereen Bhan caught up with Ramesh Bawa, CEO, IL&FS Financial Services, to ask him about the details of the MoUs signed by the company.
Below is the transcript of the interview on CNBC-TV18.
Q: Give us details about the deal.
A: One of the memorandum of understanding (MoU) that we have signed with the ICBC which is one of the biggest banks here. The understanding is basically they will be financing our infrastructure projects up to USD 1 billion, that is one MoU. It will be done all through my Hong Kong office.
The second MoU we signed is with the Huadian Group, which is one of the state-owned largest power producer company in the China. And they have done an understanding with us to make investment of up to USD 3 billion in one of our power projects in Kutch district Gujarat.
Q: Which project is this?
A: It is Nana Layja project in Kutch district in Gujarat.
Q: And what are the terms of the agreement and what kind of time period are we talking about for the loans?
A: Basically, right now it is a initial MoU that possibly they will be able to take about 75 percent of the stake. We will be holding about 25 percent.
Q: In that power project?
A: Yes.
Q: The other MoU that you talked about,, have you been able to identify specific infrastructure projects?
A: They have made the beginning. In fact the initial amount, they already sanctioned about USD 50 million and rest of the amount, we have to identify the projects which they will be financing step-by-step.
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