GMR Infrastructure Inks Pact With Japanese Agency; Shares Up

Hyderabad: GMR Infrastructure Limited said it has signed a memorandum of understanding (MoU) with Japan Bank for International Cooperation (JBIC) for providing financial assistance to Japanese companies investing in infrastructure projects of the GMR Group. Shares rose as much as 3.6 per cent to Rs 26.70 on Tuesday. 

GMR signed the MoU during the course of the state visit of Prime Minister Narendra Modi to Japan, a statement from the company said.

The objective of the MoU is to provide low cost-long duration financing for infrastructure development projects that involve Japanese companies in development of industrial parks, power, energy, ports, airports, highways and railway projects, it said.

Through this MoU, JBIC intends to promote opportunities for Japanese companies to participate in infrastructure projects and this will serve to improve infrastructure in India and support development of the necessary foundation for Japanese companies' business activities in India.

"Over the next 12 months, GMR and JBIC will work on identifying projects to attract Japanese investments," it added.

B V N Rao, business chairman-urban infrastructure and highways, who signed the MoU on behalf of GMR in Tokyo said it is a landmark event and the first that 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-delivery capabilities of the GMR Group," Mr Rao said.

It is estimated that there is a requirement for investment of about $1 trillion in the infrastructure sector in India during the current 12th five-year plan period (2012-2017) and private sector investment is expected to play an important role in the field, GMR said. 

As of 2:40 p.m., shares in GMR Infra were trading at Rs 26.45 apiece on the BSE, up 2.72 per cent from the previous close.