Glitnir Bank enters India

Glitnir, the Northern European bank headquartered in Iceland, will be filing an application with the Reserve Bank of India (RBI) soon to open a representative office in India.

The Iceland-based bank has also formed a joint venture with the LNJ Bhilwara Group to develop geo-thermal power plants in India and Nepal. The JV is proposed to be a 60:40 partnership with Glitnir Bank holding 40 per cent of the share, according to a press release.

PTI adds: "The JV with the authorised capital of $10 million would set up a geo-thermal plant in the next couple of years," LNJ Bhilwara Group Chairman Ravi Jhunjhunwala told reporters here.

The North European bank will invest in $4 million along with the technology for generating renewable energy contained in underground reservoirs of steam, hot water and hot dry rocks, he said.

Geo-thermal energy is defined as heat from the core of the earth. It is considered a renewable source because the heat emanating from the interior of the earth is essentially limitless. It is estimated to be equivalent to 42 million mw of power.

The company is yet to identify the location, but such a potential exists in the Andaman and Nicobar Islands, Kashmir, Ladakh and Chhattishgarh, he said. Typically, such a plant generates about 30-50 mw, which requires an initial investment of $300 million, he added.

Commenting on the JV, Glitnir Bank CEO Lrus Welding said the bank would also be bringing strategic investors to raise capital during different phases of the development of the geo-thermal plant.