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Karnataka Industrial Area Development Board (KIADB) has signed a Memorandum of Understanding (MoU) with HDFC Bank to provides a wide range of financial products and services to its customers.
As part of the MoU, HDFC Bank will provide a wide range of financial products and services to its customers through an extensive network of branches across the country. In addition, KIADB, in its efforts to make the land acquisition for industrial purposes more affordable and attract investments into Karnataka, has agreed to collaborate with HDFC bank so that eligible investor/customer of KIADB can avail of credit facilities from HDFC Bank as per Bank process and policies.
“KIADB nominates HDFC Bank as one of its banking partners to finance its eligible customers/allottees of industrial land/plot for setting up their project, and the Bank accepts the said nomination. The parties hereto shall offer each other from time to time the requisite support and assistance at their sole discretions and without any liability to each other,” N Shivashankara, KIADB CEO, said.
As per the MoU, KIADB shall accord approvals related to handing over possession of land and project-related construction as per agreed terms between such allottees/customers and KIADB and take up expediting measures in case of delays.
Furthermore, representatives of both parties HDFC Bank and KIADB, shall meet at their mutually convenient time, discuss and finalize the detailed process guidelines document to achieve the objectives of this MoU. This MoU shall be valid for three years from the date of execution hereof and shall be renewed with both parties consent for a further term.
“HDFC bank shall offer credit facilities to eligible companies/investors of KIADB up to 75% of the project cost. The costs such as Plant & Machinery, Construction, Lease Right acquisitions from KIADB (up to 50% of the total lease right acquisition cost) and other approved activities which is part of the project, subject to credit analysis of the Borrower/Investor and subject to HDFC Banks process, policies and RBI Guidelines. HDFC Bank shall disburse the amount for aforesaid lease right acquisition cost directly to KIADB,” Arun Aravind Regional Head, Business Banking & Bullion, Business said.