“Source:- Economic Times”
MUMBAI: European infrastructure development company A&M Development Group has committed Rs 100 crore to a Mumbai metro project along with RCC Infra Ventures through its recently formed Indian arm, Oberoi-A&M Infra-Consortium.
The company, backed by Nasdaq-listed Polaris Energy Resources, has written to Maharashtra chief minister Uddhav Thackeray, seeking permission to invest in Chembur-Bandra-Kurla Complex (BKC) phase of the Mumbai metro project.
This will be A&M Development Group’s maiden investment in India after its announcement in April to invest $20 billion in mega projects including smart cities in the country in the coming years.
The MBZ-RCC Infra Ventures joint venture had bagged the contract for the project, but it was cancelled due to the company’s inability to achieve a financial closure.
Recently, Oberoi-A&M Infra-Consortium wrote to the state government expressing its commitment to bring in the funds to revive the project. ET has seen a copy of the letter.
“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,” Inderjot Singh Oberoi, country head (India-Saarc), Oberoi-A&M Infra-Consortium, told ET. “Out of total $20 billion, our first investment is Rs 100 crore with RCC. We plan to take this further to Rs 500 crore for completing projects in roads, low-cost housing and other future projects.”
The two entities have entered into an agreement 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 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, amid 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.
In a letter written to Prime Minister Narendra Modi, Oberoi-A&M Infra-Consortium has pledged to donate 10% of its profits to the PM’s National Relief Fund for the next ten years.