Fergusson, Kotak To Help Tidco Fin Recast

The Tamil Nadu Industrial Development Corporation has appointed consultants A F Fergusson and Kotak Mahindra Finance to recommend ways to restructure its finances.

With Tidco increasingly taking into infrastructure development, the premier development agency is now looking for investment sources.

The various options under consideration include the setting up of an investment infrastructure fund funded by contributions from Tidco and other agencies.

The disbursement will then be a collective decision with broad investment parameters laid down at the time of setting up the fund.

The second is to bring in sell out of existing ventures and plough back the money into new entities. Such measures are possible given that the memorandum of understanding with each joint venture permits Tidco to do so.

The third is to have strategic partners on the Tidco board who will not only bring in equity, but also marketing and industry contacts.

Such tie-ups will be particularly helpful for various industrial parks the state proposes to set up. Already, two other state development institutions -- Sicom in Maharashtra and the Gujarat Industrial Investment Corporation have roped in investment partners like ICICI and Infrastructure Leasing & Financial Services.

The consultants are expected to submit their report by August and the recommendations will then be tabled before the state government for a final decision.