A&M Development Group, a European infrastructure development company, plans to invest Rs 100 crore (US$ 14.19 million) to a Mumbai metro project along with RCC Infra Ventures through its recently formed Indian arm, Oberoi-A&M Infra-Consortium.
The company, which is backed by Nasdaq-listed Polaris Energy Resources, has written letter seeking permission from Maharashtra chief minister Mr Uddhav Thackeray to invest in Chembur-Bandra-Kurla Complex (BKC) phase of the Mumbai metro project.
In India, this will be A&M Development Group’s first investment after its announcement in April to invest US$ 20 billion in mega projects including smart cities in the country in the coming years.
Although, the MBZ-RCC Infra Ventures joint venture bagged the contract for the project, but it was cancelled due to the company’s inability to achieve a financial closure.
Now, Oberoi-A&M Infra-Consortium wrote to the state government expressing its commitment to bring in the funds to revive the project.
“We (Oberoi-A&M Infra-Consortium) are not looking at just government contracts but also helping private companies facing funds shortage in completing various activities,” said Mr Inderjot Singh Oberoi, country head (India-Saarc), Oberoi-A&M Infra-Consortium. “Out of total US$ 20 billion, our first investment is Rs 100 crore (US$ 14.19 million) with RCC. We plan to take this further to Rs 500 crore (US$ 70.93 million) for completing projects in roads, low-cost housing and other future projects.”
The two companies have formed a pact to explore more investment opportunities with each other, and RCC will also be pitching other projects wherein Oberoi-A&M Infra-Consortium will come in as a financial partner.
“Despite of best efforts, progress of our MMRDA contract suffered because of site issues and banking impediments,” said Mr Luv Jain, executive director, RCC Infra Ventures. “Though we were in touch with other companies earlier, the tie-up with Oberoi-A&M will help us in finishing not just this contract but also other infrastructure projects that we are working on.”
In April 2020, during the ongoing COVID-19 crisis, A&M Development Group established its India office with plans to develop and execute roads, bridges, metro networks, airports, hydroelectric and irrigation dams, smart cities and low-cost housing projects through contracting and finance route.
Oberoi-A&M Infra-Consortium has also pledged to donate 10 per cent of its profits to the PM’s National Relief Fund for the next ten years.