Maharashtra govt inks $10bn deal with Gulf co

RAINING DOLLARS: 1600 acres area will be developed into an integrated economic development zone.

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Keywords: Gulf Finance, Economic Zone

Mumbai: Maharashtra is set to receive its largest foreign direct investment ever. Investment bank Gulf Finance has signed an MOU with the state government to develop a $10 billion economic development zone.

The Mumbai-Pune expressway will soon see a flood of dollars. 1600 acres area will be developed into an integrated economic development zone with four key cities focused on energy, software, telecom and entertainment.

The value of this mega project is pegged at a whopping $10.28 billion slated to be the biggest such facility in Asia.

While Gulf Finance House one of the largest Islamic Investment Bank will bring in the moolah, the Maharashtra government will only play the role of a facilitator for the development with no equity holding in the venture.

Gulf Finance House is close to completing the land acquisition process and with over 17 international hedge funds and asset management companies holding 25 per cent stake in the investment bank, fund raising has also been put into forward gear through the Automatic FDI route.

Gulf Finance House acting CEO Peter Panayiotou says, “I would say by January we would have raised $1.2 billion just to start the first two cities so you can double it for four cities - then by the time we build, put in the infrastructure the entire money spent will be $5 billion - $6 billion.“

Maharashatra Chief Minister Vilasrao Deshmukh says, “This investment will give a great boost to the state and further impetus for investment and create three lakh employment generation.”

The development value of the energy city will be up to $3 billion spread across 600 acres. It will provide business infrastructure for oil and gas producers as well as refiners, shipping and energy trading businesses.

The software and telecom cities will largely cater to the IT/ITES and telecommunication sectors covering an area of 300 - 400 acres.

While the entertainment city will be designed as a recreation, hospitality, leisure and shopping destination on 400 acres.

However, signing of the MOU for the economic development zone is just the beginning. As development plans are finalised, clearances and approvals will need to be acquired.