GE Energy Financial Services said Tuesday it will finance the construction of a power plant for an Indian cement company, and set up its first office in the country to pursue additional energy and water investments.
The moves are part of GE's initiative to generate more of its earnings from outside the United States by tapping into fast-growing economies.
GE is lending $17 million to Binani Cement Ltd. for construction of a 22.3-megawatt thermal power plant and associated common utilities in Sirohi, Rajasthan, in north India. The financing will help the company meet its enhanced power requirement to expand cement production by April of this year from 2.25 million metric tons to 5.3 million tons annually.
Binani Cement also plans to build a second 22.3-megawatt power plant.
India’s cement consumption trails only that of China, and is growing at 9 percent annually as a result of brisk housing and infrastructure construction.
"For GE, this sets the stage for our growth in India through investments in power projects addressing India’s growing industrial power requirements, including in the cement and steel industries, as well as in renewable energy, electric transmission and water,” said Colleen Harkness, Managing Director and head of Global Growth at GE Energy Financial Services.