International Finance Corporation, the private lending arm of the World Bank, is close to a deal with Tata Engineering to provide it with a rupee loan worth around $30 million.
An IFC source said here today that though the decision to have an exposure in the automobile company was taken earlier this year, a deal is likely to be signed in January 2003.
We are still working out the details. But the exposure would be around $30 million in the form of a rupee loan, the source said.
The institution is also eyeing the Indian auto component manufacturing sector as it expects it to take a larger place in the world map soon.
In fact, IFC wants to fund companies in India, which have the potential of making an international presence.
That is why we chose to invest in Apollo Tyres. This company has already taken stride into the global market, said Dimitris Tsitsiragos, IFC's director for South Asia at conference here to announce the investment in Apollo.
The institution, which has already provided $65 million this year to various domestic companies, plans to lend $200 million in 2002-03 to other private companies in the country.
Tsitsiragos said talks were on for lending to at least 10 domestic firms, particularly in industrial, healthcare, housing and automobile sectors.
We are quite optimistic of reaching or even crossing the target for this financial year which ends on June 2003, he said.