Chinese bank ICBC to provide $1 bn credit to IL&FS group

In another pact, IL&FS Energy Dev Co and China Huaneng Group aim to jointly set up and run a 3,960 Mw coal-based power project in Kutch

Infrastructure Leasing & Financial Services Limited (IL&FS) Group, has signed pact with Industrial and Commercial Bank of China (ICBC), to facilitate infrastructure financing in India.

ICBC group will consider providing financial support of up to $1 billion equivalent to the IL&FS group. The funds will be directed towards the infrastructure development requirements and related investments of the Group, IL&FS said in a statement after it signed the agreement in Shanghai.

In another pact, IL&FS Energy Development Company Ltd and the China Huaneng Group aim to jointly develop, implement and operate a 3,960 Mw coal-based coastal power project in Kutch district of Gujarat.

The thermal power project is a part of a Special Economy Zone (SEZ) being developed by IL&FS, which has achieved significant level of project development including acquisition of land, statutory clearances and recommendation of Ministry of Environment & Forest (MoEF) for grant of Environment Clearance.

The MOUs were signed as part of Prime Minister Narendra Modi's visit to China and signify an increased collaboration between the two countries.

Ramesh Bawa, managing director IL&FS Financial Services said that these pacts are a clear signal to the international community, of India's growing attraction as an investment destination. He added that IL&FS is looking to enlarge cooperation in the future with Chinese companies