MUMBAI - Marking its foray into one of the fastest growing economies of the world, Gulf Finance House (GFH), in association with Gulf Energy, yesterday announced their plans to develop India's first integrated energy business district - Energy City India, at an estimated cost of $2bn.
A Memorandum of Understanding (MoU) was signed here with the government of the western Indian state of Maharashtra, to launch the project.
The MoU was signed by V K Jairath, Secretary (Industries), Government of Maharashtra, and Esam Janahi, Chief Executive Officer and Board Member of Gulf Finance House, in the presence of Vilasrao Deshmukh, Maharashtra's Chief Minister.
Gulf Energy has last year announced its intention of creating a Pan-Asian network of energy-focused business districts or centres, the first of which the US$ 2.6 billion Energy City Qatar was unveiled in March 2006.
The prestigious Lusail area in Doha, Qatar, is the designated location for Energy City Qatar, while Energy City India will be developed on approximately 300 acres of land near Mumbai.
GFH is being assisted by Valuable Infrastructure Pvt. Ltd. in the suitability and final feasibility studies for the land acquisition towards the project. GFH also plans to develop two such hubs in other Asian markets.
The Energy City concept involves the masterplanning and construction of an integrated business centre that specialises in the provision of complete business infrastructure for leading oil and gas producers, both local and international, downstream refiners and producers, support services, shipping and energy trading businesses. An important component of the Energy City concept is the International Mercantile Exchange (Imex), which will provide a platform for electronic trading of energy contracts and derivatives.
Commenting on Energy City India, Deshmukh said: "The Indian energy sector is growing rapidly as consumption expands to fuel the high economic growth of India. We have seen unprecedented developments in the establishment of energy related infrastructure and capacity in India. In addition, Indian companies have expanded their energy interests by acquiring businesses and assets outside India.
Janahi said: "India is one of the largest energy markets in the world along with China, with a rapidly rising consumption rate. Some forecasts suggest that Indian consumption could double to 5.3m barrels a day by 2025.
"We have observed India's pro-active and successful efforts to attract inward investments. We have also seen evidence of dynamism in India's energy sector. Significant advances have been made in the areas of renewable and alternative energy sources, the development of energy-related technology platforms and Research and Development.
"We are currently working with our Indian consultants and our architects to finalise the specific components of the project, after which we will commence the master-planning exercise. We are assessing potential sites for suitability and expect to conclude site acquisition very soon. We are looking at an investment of up to $ 2bn for this land mark development," he added.
© The Peninsula 2006
