Gulf Finance House to fund $2-billion energy city in Maharashtra

Mumbai: Bahrain-based investment bankers Gulf Finance House has signed a $2 billion financing deal with the Maharashtra government for setting up an integrated energy city in the state. The state government will provide necessary support to GFH through fast-track clearances.

Energy City India, an integrated facility spread over 300 acres near Mumbai, will provide business infrastructure for oil and gas producers, refiners, as well as companies engaged in energy transporting and trading businesses, the Bahrain-based Islamic bank said.

Energy City India is the second among a pan-Asian network of four such cities envisaged by GFH. The first energy city, expected to cost $2.6 billion, is being set up at Qatar while the remaining two will be announced early next year.

"We are working with our Indian consultants and our architects to finalise specific project components, after which we will commence the master-planning exercise. We are assessing potential sites and expect to conclude site acquisition very soon," GFH chief executive Esam Janahi said. "We hope to lay the foundation stone of the city by the end of the year," he added.

GFH proposes to set up a holding company which will make the initial investment of around $300-500 million through the foreign direct investment (FDI) route.