GoM signs MoU with GFH for development of integrated energy district

Mumbai, Oct 5 (UNI) Reinforcing the state's position as the business hub of India, the Government of Maharashtra today signed a MoU with Gulf Finance House (GFH), an investment bank from the Gulf Corporation Countries (GCC), to facilitate the creation of India's first integrated energy business district Energy City India, with an estimated development value of 2 billion dollars.

The MOU (Memorandum of Understanding) was signed by Maharashtra Secretary Industries V K Jairath and Chief Executive Chief Executive Officer and Board Member of Gulf Finance House Exam Janahi, in the presence of Maharashtra Chief Minister Vilasrao Deshmukh.

Late last year, GFH announced its intention of creating a Pan-Asian network of energy-focused business districts or centres, the first of which - the 2.6 billion dollars Energy City Qatar - was unveiled in March 2006. The prestigious Lusail area in Doha, Qatar, is the designated location for Energy City Qatar.

Energy City India will be developed on about 300 acres of land here. GFH is being assisted by Valuable Infrastructure Pvt Ltd in the suitability and final feasibility studies for land requirement for the Energy City India.

GFH also plans to develop two more such hubs in other Asian markets, details of which will be announced early next year.

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 Mr 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''.

''Energy City India is a concept whose time has come. The importance of energy to our future prosperity cannot be underestimated. I am very pleased at this initiative, and that the project will be based in Maharashtra. We welcome this initiative by Gulf Finance House, another example of foreign investment in our country'' Mr Deshmukh said and further stated that GFH will directly acquire the land for this project.

The Energy City concept was developed by both GFH and Gulf Energy, an international energy consulting firm.

Elaborating on the Energy City concept, Mr Esam Janahi, Chief Executive and Board Member of GFH, and Chairman of Gulf Energy 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 5.3 million barrels a day by 2025.'' ''We have observed India's proactive 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&Development,'' he added.

On the choice of Maharashtra for the location of the project, Mr Janahi said, ''The Maharashtra Government's pro-industry, pro-investment policy, its strategic position in India's energy sector and, most importantly, the immense support extended by the Chief Minister and his team, were the key deciding factors behind our decision to locate the project here.'' ''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 2 billion dollars for this land mark development,'' he added.

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