January 11, 2007

Maharashtra Industrial Development Corporation today signed four agreements with the India Infrastructure Initiative, which is jointly promoted by IDFC and Feedback Ventures. The India Infrastructure Initiative (Triple-I) will undertake project preparation and partner selection for four PPP projects in Maharashtra: an airport at Sindhudurg; a textile SEZ at Kolhapur; a power SEZ at Chandrapur; and a power SEZ at Raigad.

"These four projects will help Maharashtra promote industrial growth and employment. They will also help in regional development of the state, with both the Konkan and the Vidarbha regions benefiting through better connectivity and better power", said Mr. Ashok Chavan, Minister of Industries, Government of Maharashtra. He added: "Maharashtra has shown many successes in attracting private investment through Public Private Partnership. I compliment the Triple-I team for creating a new model of PPP development and for taking on this assignment of finding private investors for these important projects."

The India Infrastructure Initiative offers a "no-cost" solution to the Government / Government Undertakings to hand-hold them through the process of project preparation and partner selection for the identified infrastructure projects. For its services to create a pool of bankable infrastructure projects, Triple-I does not charge the Government or Government agencies and instead recovers its costs from the selected private sector partners for the projects, thus creating a win-win situation for all concerned.

"We at IDFC are India's largest specialist Infrastructure Institution, and are present in the entire space of privately financed infrastructure. We are proud to partner MIDC in developing these projects, close to the commercial capital of the country. We look forward to contributing to the Infrastructure growth story in collaboration with various state governments", added Dr. Rajiv B. Lall, Managing Director and CEO of the Infrastructure Development Finance Company, which financed over a quarter of all debt and equity investment in infrastructure in Fiscal 2006. Its current balance sheet size is above Rs. 15,000 crore.

"MIDC is charged with the mission of accelerating Maharashtra's industrial growth. These four projects will contribute directly to this. The textile SEZ at Kolhapur will generate more than ten thousand jobs. The two power SEZs should add 1,250 megawatts of generating capacity to the state. The new airport will bring greater connectivity to the Konkan region. We expect that Triple-I will be the vehicle for rapid selection of partners to execute these important projects." This was stated by Mr. Rajiv Jalota, CEO of MIDC.

Indeed, these projects are expected to see nearly Rs. 6,000 crore of new investment in the state, as well as the easing of some critical infrastructure bottlenecks. This will, in turn, propel the state to still faster growth.

"Triple-I, by combining the over six hundred-strong team of professionals at Feedback with the financial strengths and partner selection skills of IDFC, is providing government agencies critically-needed skills to create a pool of bankable infrastructure projects. It is also expected to play the much-needed role of a neutral adviser to the State, and thus ensure complete transparency in the award of projects—all at its own cost", added Mr. Vinayak Chatterjee, Chairman of Feedback Ventures.

"Progressive State Governments have realized the potential of Public – Private Partnerships in rapid infrastructure development, and Government of India is actively promoting the PPP route. We at Triple-I have a tailor-made solution for such enlightened Governments, and we are happy to start our work in Maharashtra," said Mr. Shailesh Pathak, Head, PPP Initiative, IDFC.

MIDC has been established in 1962 under the Maharashtra Industrial Development Act, 1961 as a premier infrastructure development agency of the Government of Maharashtra. Its major objective is to set up infrastructural areas for planned and systematic industrial development in the State of Maharashtra and to function as a Special Planning Authority in developing these areas. "Prosperity to all through industrialization" is the corporate philosophy of MIDC. MIDC has established 229 industrial areas for different sectors like engineering, information technology, biotechnology, food processing, gems, and jewelry, textiles, leather, and chemical industries. MIDC is providing land, connectivity, and water to the units set up in MIDC areas and also facilitating the other facilities through single window system. It has also provided airport facilities to some of the important industrial towns to facilitate faster connectivity. In addition, MIDC is establishing Special Economic Zones at 23 locations to promote exports and employment.

IDFC began mainly as a Government of India (GoI) initiative supported by government-held financial intermediaries, multilateral agencies and some leading Indian private sector financial houses. In 2005-06, after an Initial Public Offer, a much wider body of institutional and retail shareholders owns part of India’s premier, dedicated Infrastructure finance company. IDFC’s mission is to be the financier and advisor of choice for Infrastructure projects in India. Its balance sheet size has grown from Rs 3727 crores in Fiscal 2003 to Rs 15,393 crores on September 30, 2006.

IDFC provides a wide range of financing products and fee-based services to Infrastructure projects and their sponsors. The main focus has been on the energy, transportation and telecommunications & IT sectors, while the industrial and commercial Infrastructure sector is a new area of business growth.

Feedback Ventures is India's leading integrated infrastructure development company, with a mission of "Making Infrastructure Happen". Totally focused on infrastructure development, Feedback Ventures offers an integrated suite of services that covers all the steps from "concept to commissioning". Over the years, Feedback has become known both for its innovative work as well as for its ability to ensure successful implementation of infrastructure projects.

For more information, please contact:

Mr. Harsh Shrivastava
III Secretariat
Tel: 098 1060 9988

Mr. Anil Mathew
MIDC
Tel: 98 2048 0317