InfraCo Asia Development has signed a joint venture agreement to develop a hydroponics project in Junga in the Shimla district of Himachal Pradesh. InfraCo Asia – through its South Asia developer team, Equicap Asia and local partner Junga FreshnGreen – will establish a 9.3-hectare hydroponics-based agricultural facility.
InfraCo Asia funds pre-financial close, early stage, high-risk infrastructure development activities by taking an equity stake in sustainable and commercially viable infrastructure projects. It aims to stimulate greater private sector investment in infrastructure in South and Southeast Asia.
InfraCo Asia will invest US$1.1 million in the project, which has a total value of US$4.45 million. Private Infrastructure Development Group is also supporting the project through its technical assistance facility, which will provide US$800,000 in financial assistance.
Junga FreshnGreen was formed by Indian company Vas Agri through a joint venture with Netherlands-based Westlandse Project Combinatie (WPC). Under the agreement, WPC will provide hydroponics expertise and technology support for the Junga venture.
The project will be implemented in two phases, and is expected to be fully commissioned in the first quarter of 2020. “InfraCo Asia is pleased to bring the necessary leadership and development capital to a project which promises to demonstrate cutting-edge agricultural innovation in India,” said Allard Nooy, InfraCo Asia’s CEO.
IndusLaw partner Navien Syiem and associate Ankita Chatterjee advised InfraCo Asia and Equicap Asia on the deal.