Canada-based firm gets IFC loan for India expansion

Tuesday, 01 July 2003, 19:30 IST
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WASHINGTON: The International Finance Corporation (IFC) has signed a $40-million loan agreement with a Canada-based natural gas producer to support the expansion of its base in Gujarat. The investment in Calgary-based Niko Resources Ltd 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, Niko generates 99 percent of its revenues from its Indian operations and has over 80 percent of its asset base located in that country. India has been experiencing a shortage of natural gas due to increasing industrialisation and rising demand for power. Niko's expansion will more than double its production of natural gas and enable it to supply a larger industrial customer base in Gujarat. According to Rashad R. Kaldany, IFC director for oil, gas, mining and chemicals, Niko's commitment to the Indian petroleum sector over the years has 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.
Source: IANS
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