Gujarat signs investment pacts worth $18.75 billion with several firms

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AHMEDABAD (Reuters) – Companies across many sectors on Wednesday, Dec. 20, 2023,  signed initial investment pacts totalling $18.75 billion for projects they will build in India’s western state of Gujarat, according to a government statement.

As part of the deals, an arm of Welspun Enterprises will invest $5.11 billion, partly to build green hydrogen and green ammonia facilities, documents reviewed by Reuters showed.

The string of investment pacts come days ahead of India’s Prime Minister Narendra Modi opening the state’s biennial investment forum where he wants to boost his home state of Gujarat’s manufacturing capabilities in key sectors.

Other heads of state and business leaders are expected to attend the forum.

Deals inked on Wednesday also include agreements with state-backed Housing and Urban Development Corp to disburse loans worth 145 billion rupee ($1.74 billion) and with the National Bank of Agriculture and Rural Development to provide financing worth 260 billion rupees, documents showed.

Last week, Gujarat also inked a deal with steel manufacturer ArcelorMittal Nippon Steel India worth 125 billion rupees to upgrade an existing project in the state by 2026, as per the documents, along with another set of deals worth 450 billion rupees.

Welspun, ArcelorMittal, Housing and Urban Development and the National Bank were not immediately available to comment after normal business hours.

Separately, Indian conglomerate Essar also said last week it will invest nearly 550 billion rupees in energy transition, power and port sectors in the state, as it renews the firm’s strategic investments after clearing a huge debt.

($1 = 83.1390 Indian rupees)