Mohan Padmanabhan

Kolkata, May 16

SREI Capital Markets Ltd (SCML), a member of the Srei Infrastructure Finance group, has entered into a 51:49 per cent project consultancy joint venture with West Bengal Industrial Development Corporation Ltd (WBIDC) for the purpose of conceptualising and implementing infrastructure projects in West Bengal.

The newly formed joint venture company has already taken up consultancy work on a growth centre project in Bankura district. A joint venture agreement has been executed by the two parties to give full effect to the already created new corporate entity labelled `Bengal Srei Infrastructure Development Ltd'.

The board of directors of the joint venture company will constitute two representatives of WBIDC.

As per the terms agreed upon, Bengal Srei, on its own or by assignment from Srei Capital, will be get to work on infrastructure projects of the West Bengal Government, and the remuneration for undertaking such projects should be Rs 25 lakh or above for one or more of such projects.

Formed with an initial paid-up capital of Rs 5 lakh, the authorised capital, according to the agreement, may be increased to Rs 25 lakh, with proportioned sharing of 49 per cent by WBIDC.

According to the agreed terms, the disbursement of the equity funds by the Corporation in Bengal Srei shall be subsequent to and consequent upon Srei Capital bringing in its proportionate contribution into the joint venture company.

It is learnt that such contribution may also include the funding of expenses such as registration fee and other expenses incurred on the infrastructure project.

Asked on the maiden project already taken up by the new entity, Mr Gopal Krishna, Managing Director of WBIDC, said the site was at Barjora, in Bankura district, and involved the setting up of a growth centre.

It is learnt that the West Bengal Industrial Infrastructure Development Corporation has chalked out plans to conduct an in-depth diagnostic study on the existing and new growth centres in the State, and has initially identified Kharagpur, Haldia and Falta Phase - I & II as potential sites.

The study will include potential of the vacant land in the functioning growth centres and land occupied by non-functioning units in the said centres and the market potential of the new growth centres that are under acquisition by the corporation.

Sources said the Corporation has already made an offer to Bengal Srei Infrastructure for strategic consultancy regarding the existing and new growth centres.

(This article was published in the Business Line print edition dated May 17, 2005)
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