Home / India / Odisha signs MoU with International Finance Corporation

Odisha signs MoU with International Finance Corporation

Programme is a part of a wider World Bank Group Technical Assistance to support state in enhancing economic growth: Govt release
Representational image.
Representational image.

Subhashish Mohanty   |   Bhubaneswar   |   Published 23.07.22, 03:51 AM

The Odisha government has signed an MoU with the International Finance Corporation, a member of the World Bank group, to get its support in implementation of the Asset Monetisation and Recycling Programme.

“This programme is a part of a wider World Bank Group Technical Assistance to support the state in monetising existing public sector assets and enhance the state’s economic growth. The Program will facilitate and accelerate the monetisation process in the state by unlocking the value from large scale public investment in the brownfield infrastructure assets and bringing in private sector efficiencies,” said a press release issued by the state government.

On behalf of the state government, Managing Director, IPICOL (Industrial Promotion and Investment Corporation of Odisha limited) and additional secretary, Industries Department, Bhupendra Singh Poonia signed the MoU and from the IFC Roshika Singh, senior country officer signed the documents.

According to the MoU, the IFC will support the state in screening and developing a prioritised list of monetisable brownfield state­owned assets for select sectors that can be further screened to identify and define bankable pilot projects that may be taken to market for attracting private sector investments that can eventually be used for demonstrating the benefits of brownfield-asset monetisation and upgrading the state’s infrastructure facilities.

Globally, developing countries have been adopting various forms of Asset Monetization and Asset Recycling approach to generate funds for their economies. India’s infrastructure development pipeline has an estimated funding requirement of $1.5 trillion until 2025.

IFC’s India Country Head, Wendy Werner said: “With the impact of economic shocks limiting fiscal space in many countries, the need for innovation to fund the infrastructure gap, particularly through crowding in private investments, is all the more crucial.”

“India has a huge potential to monetise its brownfield infrastructure assets and upgrading it to international standards for meeting the demands of a growing urban population. On this account, the IFC is pleased to offer its global expertise in attracting private finance for infrastructure and deep understanding of PPPs to the Government of Odisha,” she added.

Chief secretary, Suresh Chandra Mohapatra said: “We are pleased to partner with the IFC in identifying assets that can be leveraged for attracting more private sector investments in the state. This will help us bridge some of the financing gap improving and upgrading state’s infrastructure.”

“The asset monetisation program would create a new source of finances and mechanism to fund development of core infrastructure projects,” said Pradeep Jena, the development commissioner cum additional chief secretary.

Principal secretary, industries department, Hemanta Sharma said: “Industries department would reach out the each and every department to identify monetisable assets. With help of the World Bank Group, we will assist in structuring the projects and making it ready for transaction.”

Copyright © 2020 The Telegraph. All rights reserved.