The Hindu Business Line : Maharashtra signs MoU with Gulf Finance House

NEW PROJECT: The Maharashtra Chief Minister, Mr Vilasrao Deshmukh (second right), and the Industry Minister, Mr Ashok Chavan, looking on as the Industries Secretary, Mr V.K. Jairath, and the CEO and Board Member, Gulf Finance House, Mr Esam Janahi, exchange documents after an MoU signing ceremony in Mumbai on Thursday. — Shashi Ashiwal

Mumbai , Oct. 5

The Maharashtra Government on Thursday signed a memorandum of understanding with Gulf Finance House (GFH), an investment bank based in Qatar, for setting up of the first integrated energy business district.

The 300-acre district named `Energy City India' will come up near Mumbai. The GFH will invest about $2 billion for creating the district.

Mr Esam Janahi, Chief Executive of GFH, said Energy City India will involve construction of a business centre that provides complete business infrastructure for leading oil and gas producers, downstream refiners and producers, support services, shipping and energy trading business. Residential complexes would also be created for the company personnel who would be setting up offices in the district, he said.

Mr Janahi said initially $400 million would be investment in the project. Site selection for the project would start after approvals from the Union Government. Energy City India is the second of the four such cities planned by GFH for a Pan-Asian network.

The first Energy City, to be developed at an estimated cost of $2.6 billion, was announced in Qatar in March while the remaining two will be announced early next year, he said.

Mr V.K. Jairath, Industries Secretary of Maharashtra, and Mr Janahi, signed the MoU.

An important component of the concept is the International Mercantile Exchange, which will provide a global platform for electronic trading in energy contracts and derivatives.

Commenting on the energy city, the Chief Minister, Mr Vilasrao Deshmukh, said, "Energy City is a concept whose time has come. The importance of energy to our future prosperity cannot be underestimated. We welcome this initiative by Gulf Finance."

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