Date:04/05/2005 URL: http://www.thehindubusinessline.com/2005/05/04/stories/2005050401950600.htm

Back IDFC plans to fund more IT parks

Our Bureau

Chennai , May 3

IDFC expects its assistance to the industrial and commercial infrastructure sectors to grow. Areas such as special economic zones, hotel projects and IT parks come under this category.

This sector now accounts for about 10 per cent of IDFC's funding and this percentage will grow, according to IDFC officials.

Dr Rajiv B. Lall, Managing Director and CEO, told newspersons that the company would look at funding more IT parks. It has already funded a project in Karnataka.

On the industrial and commercial infrastructure sectors, IDFC officials said that the company was involved with the Ennore special economic zone in Tamil Nadu.

It was partnering with the Tamil Nadu Industrial Development Corporation (TIDCO), a State Government undertaking, and Ennore Port Ltd for this port-based SEZ.

Mr Anupam Srivastava, Senior Director (Business Development), said that a separate company to execute the project had been formed and PricewaterhouseCoopers was conducting feasibility studies.

These would cover the nature of industries that could be located and how the project could be structured.

He said that the investment in this project would be more than Rs 2,000 crore.

IDFC plans to take the project up to the initial development stage and exit it along with the Tamil Nadu Government. It could even continue, albeit as a minority project investor.

Mr Srivastava said that IDFC was involved in a number of advisory assignments in Tamil Nadu, including in helping Chennai Metrowater on tariff indexation and in preparing a Chennai infrastructure plan for the Chennai Metropolitan Development Authority.

It was advising one of the bidders for the Chennai desalination plant.

IDFC's exposure in Tamil Nadu is about Rs 700 crore. It has assisted a number of private power projects.

Dr Lall said that the energy sector, which accounts for 34 per cent of IDFC's exposure, provides ample opportunities for growth not just in private sector generation projects but captive power projects as well.

A number of companies are looking at these to meet their power needs and as an investment opportunity.