Guwahati, Dec. 13: The North Eastern Development Finance Corporation Ltd (NEDFi) has signed a memorandum of understanding with financial service provider Infrastructure Leasing and Financial Service Limited (IL&FS) for joint initiatives in project development, project financing and corporate financing in different sectors in the Northeast.
The MoU was signed last night in the city in presence of Assam governor Lt Gen. (retd) Ajai Singh. Chairman and managing director of NEDFi J.P. Saikia along with Ravi Parthasarthy, vice-chairman and managing director of IL&FS, executive director Hari Sankaran and Pradeep Singh, chief executive officer of IL&FS were present in the MoU-signing ceremony.
Ravi Parthasarathy said the partnership would accelerate the flow of substantial private capital to the region to supplement government investments for infrastructure, tourism and industrial development.
Officials said both the institutions would focus on the power sector and rehabilitation and strengthening of industrial estates in the region. The Assam State Electricity Board (ASEB) has already initiated a reforms process, which is expected to bring in private sector investment. They said several coal and gas-based thermal power stations of the region, which are in need of rehabilitation and renovation, would receive attention from the two financial institutions.
?The collaboration agreement will pave the way for the Northeast to become an attractive investment destination for financial institutions, project sponsors and the investor community of the country,? officials said.
NEDFi chairman-cum-managing director J.P. Saikia said his organisation?s strong manpower base and networking ability within the region and IL&FS?s huge experience and expertise in bringing private sector capital to infrastructure projects would provide synergistic advantage for creation of viable infrastructure projects in the region.
Saikia also requested the Assam government to extend help in formulating a mechanism for structuring infrastructure projects so that private capital can be encouraged in the public utilities.
The IL&FS was incorporated in 1987 and commenced operations in 1988. It has been promoted by the Central Bank of India, the Housing Development and Finance Corporation Limited and the Unit Trust of India.
The company undertakes operations in commercialisation of infrastructure projects through formulation of commercially-viable schemes in conjunction with public and private sector project sponsors. It also provides a full range of financial services including equipment leasing, asset management and advisory services. It has commissioned the Delhi-Noida bridge project, Tirupur project and road projects in Gujarat and Tamil Nadu.