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IFC invests $40mn for India gas project
June 28, 2003 13:21 IST
The International Finance Corporation, the private sector arm of the World Bank, has signed a $40 million loan agreement with Calgary-based Niko Resources Limited for expansion of its production base in Gujarat.
This investment is the first for IFC in the Indian petroleum sector in several years.
Niko was one of the first private companies to operate in India's petroleum sector after the government took steps to deregulate the market in the 1990s.
Today, the company generates 99 per cent of its revenues from its Indian operations and has over 80 per cent of its assets base located in the country.
"Niko's commitment to the Indian petroleum sector over the years has not only been a profitable investment for the company but it has also helped boost the prospects for further private sector investment in oil and gas projects in the country," IFC director for oil, gas, mining and chemicals Rashad R Kaldany said.
"IFC is glad to have a role in supporting the development of the petroleum sector in India," he added.
In recent years India has experienced a shortage of natural gas due to its increasing industrialisation and rising demand for power. The expansion will more than double Niko's production of natural gas and enable it to supply a larger industrial customer base in Gujarat.