Indian, UAE firms in deals over 25 billion dollars

Mar 26, 2007, 12:51 GMT

New Delhi - Companies from India and the United Arab Emirates (UAE) finalized deals worth more than 25 billion dollars on Monday in a highlight of a trade mission by UAE Prime Minister Sheikh Mohammed Bin Rashid al-Maktoum to India.

India's largest real estate firm DLF said it would invest about 24 billion dollars for developing two townships in India in collaboration with Dubai-based Al-Nakheel over a period of six years.

'For the investment, DLF and Nakheel have floated a 50:50 joint venture,' a DLF company official told the PTI news agency.

The joint venture envisages establishment of two townships of 20,000 acres each - one near the Indian capital New Delhi and the other located at the western city Mumbai.

Work on the project would start this year and is expected to be completed by 2013. The first phase would be completed at a cost of upto 12 billion dollars in the next three years.

'Some of the land needed for the township would come from the existing land bank of DLF, while the rest is being bought directly from farmers,' the official told the news agency.

In another deal, the Hinduja Group, owned by the London-based Hinduja brothers, said the company planned to start a chain of hospitals in India with an investment of 1 billion dollars in a tie-up with Dubai's government-owned Limitless LLC.

Under the project, hospitals would be established in the major Indian cities of Delhi, Mumbai, Bangalore and Hyderabad.

Details of the deals were disclosed on the margins of a conference in New Delhi between Indian business leaders and Sheikh Mohammed, also the ruler of the emirate of Dubai.

The UAE leader, accompanied by a high-level delegation of senior ministers and businessmen, arrived on a two day-long trade mission to India on Sunday.

The Hindujas also signed a 12 billion rupee (277 million dollar) deal with Nakheel to build resort and commercial projects in Dubai.

Meanwhile, India's leading consumer durables maker Videocon Group said it was considering setting up a 10-billion-rupee manufacturing unit in Dubai.

Earlier on Monday, the UAE premier was given a ceremonial reception at the forecourt of the Presidential Palace in Delhi, where he was warmly received by his Indian counterpart Manmohan Singh.

Sheikh Mohammed was due to hold talks with Singh after which both sides were expected to sign seven pacts aimed at promoting bilateral trade and investment.

The UAE premier is scheduled to depart for Dubai on Monday night at the conclusion of his visit.