The Indian Panorama

Tag: Lakshmi Capital

  • El Salvador and Lakshmi Capital sign two impactful Infrastructure Projects

    El Salvador and Lakshmi Capital sign two impactful Infrastructure Projects

    GUATEMALA CITY (TIP): Embassy of India is Guatemala aims to propel indigenous production across diverse sectors following the vision of Prime Minister Modi’s encapsulated in “Make in India” and “India Goes Global”. With a primary emphasis on facilitating business operations, enhancing infrastructure, and upgrading skills, these guiding principles aim to strengthen India’s global footprint. Through strategic collaborations, outreach to investors, and diplomatic efforts, India seeks to assert its influence, promote mutual prosperity, and contribute to shaping a more interconnected and inclusive global landscape. This proactive approach towards bolstering trade and investment with Latin and Central American nations has resulted in strengthened economic bonds and increased collaboration across various sectors. By focusing on expanding market access, fostering technological exchange, and encouraging joint ventures, India is paving the way for deeper engagement with the region. India’s significant role in infrastructural development, particularly in sectors such as transportation, energy, and urban infrastructure, has played a pivotal role in driving sustainable growth and development in Central America. As part of these efforts, India is in advanced stages of collaboration with the Government of El Salvador through investments from Lakshmi Capital, an Indian company, to facilitate critical infrastructure projects. These projects include the construction of metro lines and the supply of buses, which will contribute significantly to the region’s socio-economic advancement.

    Ambassador Dr Manoj Kumar Mohapatra with Hon’ble Mr. Ibrahim Bukele during signing of MoUs.

    Recently, Lakshmi Capital, and the Ministry of Public Works and Transportation of the Republic of El Salvador signed a Memorandum of Understanding in San Salvador on 16 February 2023 for construction of 22 km metro line project (extending from initial proposal of 11 kms) in San Salvador. The MoU was signed between Minister Romeo Rodríguez of Ministry of Public Works, Government of Republic of El Salvador and Transportation and Mr. Russell Alexander Luther Rodas of Laxmi Capital in the presence of Ambassador of India in Guatemala, Dr. Manoj Kumar Mohapatra. Following thorough technical discussions, the Concession Agreement is anticipated to be signed in the first week of April 2024. A team of Delhi Metro is also scheduled to visit El Salvador from 18-22 March, 2024 to oversee the technicalities of Metro line project in the region.

     

    Extending this collaboration to improve the infrastructural development in the region and with proactive approach of the El Salvadorian Government, the parties also signed another MoU to supply 5000 buses on 22nd February 2024. These milestones will pave the way for a visit by a delegation led by Hon’ble Mr. Ibrahim Bukele to India to administer technical know-how of these transformative projects. Furthermore, discussions have already been started with Delhi Metro Rail Corporation (DMRC) for construction-related matters with regard to metro line project, and with Ashok Leyland and Tata Motors for bus procurement.

    The metro line project and the provision of buses are geared towards revitalizing the economy and modernizing transportation infrastructure in the nation. Under the esteemed guidance and visionary leadership of President-elect Bukele, significant strides are being made by both countries towards realizing the established objectives. This collaborative effort underscores the strengthening bonds of friendship and mutual respect between India and El Salvador, fostering enhanced bilateral relations and mutual prosperity. India remains committed to further collaborating with the Government of El Salvador to advance other agendas such as atomic energy development, initiatives in non-renewable energy, digital transformation, and more.

  • SIGNING OF LOI FOR GUATEMALAN INTEROCEANIC CORRIDOR (GIC). (DRY CORRIDOR PROJECT ) IN GAUTEMALA

    SIGNING OF LOI FOR GUATEMALAN INTEROCEANIC CORRIDOR (GIC). (DRY CORRIDOR PROJECT ) IN GAUTEMALA

    The parties with signed copies of Letter of Intent to construct the Dry Corridor Project with Ambassador Dr Manoj Kumar Mohapatra.

    February 15, 2024

    GUATEMALA CITY (TIP): In recent times, Indian companies’ interest and involvement in Guatemala, particularly across sectors such as pharmaceuticals, automobiles, business process outsourcing (BPO), and textiles, has increased.  The establishment of Yash Pakka Inc, with an investment of US $350 million, stands out as a noteworthy initiative, showcasing how Indian enterprises are effectively leveraging Guatemala’s strategic location to access markets in the Western Hemisphere. This endeavor has garnered attention from various conglomerates, with a recent example being a textile company making a substantial investment of approximately $300 million in Guatemala. The growing demand for the Guatemalan market among Indian businesses has spurred a series of Indian business delegations to explore new avenues for partnerships in the region. These developments have further attracted companies like SRAM & MRAM to explore opportunities in this dynamic region.

    SRAM & MRAM, a company under Hiranandani Group, has shown a keen interest in investing a significant amount in various infrastructure development projects across Latin America, particularly in the northern triangle region. SRAM & MRAM is a United Kingdom-based company with branches in several countries. The company has its core competencies in Agro-products and Information Technology, Hedge Fund Management, FOREX Management, Hospitality Services, etc. Recognizing the immense potential within the Latin American market. SRAM & MRAM, through its subsidiary company, Lakshmi Capital has reached out to the Embassy to seek insights into market dynamics. The company has pledged to invest a substantial total amount of US $17 billion, with a significant portion, amounting to US $10 billion, earmarked for the, namely the Guatemala Inter-oceanic Corridor. This project is planned to be structured under the Build-Operate-Transfer (BoT) model.

    On February 13, 2024, a significant milestone was reached with the official signing of a Letter of Intent between M/s Grupo Odepal, S.A. and M/s Lakshmi Capital, representing an investment commitment of US $10 billion for the construction of the Guatemalan Interoceanic Corridor (GIC). This ambitious project aims to develop a state-of-the-art Multimodal Transport System stretching across a land strip spanning 372 kilometers in length and 140 meters in width, effectively connecting the Atlantic and Pacific Oceans.

    The GIC project encompasses several key components, including the establishment of two new deep-water ports on each coast of Guatemala, which will be linked by a double-track railway system. Additionally, a pipeline network will be constructed for the transportation of hydrocarbons coast to coast, complete with storage tanks and buoys in the ports to facilitate efficient operations. Furthermore, the GIC will feature six strategically distributed industrial, commercial, and services zones along the inter-oceanic land strip, aimed at promoting economic growth and facilitating trade. Moreover, the project will provide various ancillary services to support the region’s development, including the implementation of water collection and distribution systems, the establishment of an electricity generation and distribution network, deployment of fiber optic connections for enhanced communication infrastructure, ecological development and compensation initiatives, establishment of tourism promotional centers, and improvement of people transportation facilities.

    In addition to the GIC project, the company is also involved in significant developmental projects in the Municipality of Xela, with the signing of five additional impactful projects totaling an investment of US $1.2 billion. These projects include the implementation of a hydroelectric system, a cable car system, supply of 7000 buses, construction of a waste management plant, and development of a 75MW solar energy plant in the region. Embassy of India in Guatemala acknowledges the potential impact of Indian involvement in the region for which it proactively supporting these projects in the region by exploring avenues for the participation of Indian companies in significant infrastructural endeavors within the area.

    The signing of the Letter of Intent (LOI) was attended by prominent dignitaries from Guatemala, including Ministers, Congressmen, Mayors, members of the diplomatic fraternity, and businessmen.