International Finance Corp to lend $1 bn to Indian industry

March 13th, 2008 - 7:57 pm ICT by admin  

Ahmedabad, March 13 (IANS) World Bank affiliate International Finance Corp (IFC), which finances private sector ventures, would lend around $1 billion (Rs.40.4 billion) to industries across India in 2008, said a senior official. Lance Crist, head of chemicals division of IFC was speaking to reporters after signing a subscription and shareholders agreement with the city-based Meghmani Organics Ltd (MOL).

According to the agreement, IFC would pick up 25 percent equity in MOL’s subsidiary Meghmani Finechem Ltd’s (MFL) clor-alkali project, to be come up at Dahej of Bharuch district, South Gujarat.

Elaborating on why IFC chose to pick up 25 percent equity in MFL, more than the normal norm of 20 percent, he said MOL had a good track record of performance in its main field of producing pigments and agro chemicals.

He said MOL was diversifying its interests into clor alkali business. It was also adopting environment friendly technologies, which the IFC feels, could beneficially impact other chemical industries in India.

“So we decided to support the growth plan of MOL by deciding to become a strategic partner in the new project,” said Crist.

He agreed that the chemical industry was vulnerable to fluctuations in the market. But over a period of time new technologies have emerged which have opened fresh opportunities, Crist said.

Also, MOL has established its credentials as a low cost producer and in India, industries using chemical products are growing. This has led the IFC to believe that the chemical industry would be stable and sustainable, he added.

MOL officials, endorsing Crist’s observations, said in the new project a provision has been made for captive power generation up to 40 MW which would take care of the rising power costs.

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