The merchant bank State Industrial and Investment Corporation of Maharashtra (Sicom), which was appointed by MIDC as an arranger has roped in ICICI Bank for providing loan at a competitive rate of 12.10 per cent, said MIDC chief executive officer Jayant Kawle. He added that various other leading banks have also offered to provide assistance, which would be repaid within seven years.

Mr Kawle told The Financial Express that MIDC, which has achieved a turnover of Rs 600 crore during 1999-00, would use the loan amount for the development of its second infotech park at Hinjawade, near Pune, which is over 500 acres and other information technology parks at Latur, Nagpur, Nashik, Kolhapur, Solapur, Ahmednagar, Sangli and Satara.

Mr Kawle said that MIDC, with assets of over Rs 3,000 crore, would form a joint venture with private sector companies for the generation and supply of "quality" power in the information technology parks, bio-technology parks and special economic zones across the state. "MIDC, which will soon appoint a consultant to prepare the structure of the JV, will not pick up any financial equity in the proposed JV, but will provide space and assured consumers at these parks," he added.

Mr Kawle said that power would be provided at cheaper rate compared to the tariff charged by the Maharashtra State Electricity Board (MSEB). "Such power projects will be an extended version of captive power project based on diesel," he added.

Furthermore, state industries minister and MIDC chairman Patangrao Kadam, after the MIDC board meeting, said that it would encourage private sector participation for the hydro-power generation, with a capacity of 15 mw at Barvi dam in Thane district. This project would be developed on Build-Operate-Own-Transfer basis.

Dr Kadam, who was accompanied by his deputy Jaidutt Kshirsagar said that power generated from the proposed hydro project would be utilised fully by the MIDC for its own use.