SOURCE: Glitnir

November 27, 2007 08:40 ET

Glitnir and LNJ Bhilwara Group in India Sign Memorandum of Understanding -- Glitnir to Partner With Leading Energy Company of India to Establish Geothermal Energy in India and Nepal

NEW DELHI, INDIA--(Marketwire - November 27, 2007) - Photo: Mr. Awadh B. Giri, CEO-Power, of LNJ Bhilwara Group and Mr. Bala Murughan Kamallakharan, Executive Director of Strategic Growth, Glitnir; signing the MoU to collaborate in developing geothermal power plants in India and Nepal at the presence of Mr. P Chidambaram, Hon'be Minister of Finance (White dress), Govt of India and H.E. Arni Mathiesen, the Minister of Finance for Iceland(Standing, 3rd from Left) in New Delhi today.

New Delhi, 27 November 2007 -- Glitnir, the Nordic corporate investment bank, and LNJ Bhilwara Group with operations in India and Nepal has signed a Memorandum of Understanding (MoU) to collaborate in developing geothermal power plants in India and Nepal. This MoU has been signed during the visit of the Finance Minister of Iceland on invitation from Finance Minister of India. The finance minister of Iceland H.E. Árni Mathiesen is on an official visit with a business delegation focused on Energy development in India.

Glitnir will play the role of bringing expertise in the geothermal field and financial structuring of projects related to development of geothermal sources. LNJ Bhilwara Group will play the role of local developer and manager of the project. Glitnir and LNJ Bhilwara Group will work together in developing the business plan and the project.

The MoU was signed in the presence of Mr. P Chidambaram, Hon'ble Minister of Finance for India and H.E. Arni Mathiesen, the Minister of Finance for Iceland. This MoU was signed by Mr. Awadh B. Giri, CEO-Power, of LNJ Bhilwara Group and Mr. Bala Murughan Kamallakharan, Executive Director of Strategic Growth in Glitnir.

Speaking on this occasion Mr. P Chidambaram, Hon'ble Finance Minister of India said "I am happy that this important MoU has been signed between two leading companies in Iceland and India. This will encourage prospects for growth in India in the geothermal arena. I am confident they will be successful; India is a vast country with a various untapped resources like Geothermal. India has planned $475 billion investments in the next five years, out of which $120 billion-$130 billion will be achieved through FDIs. Initiatives such as this will surely contribute in achieving our investments targets."

Speaking in the Energy and Finance seminar Mr. Arni Mathiesen, Hon'ble Finance Minister of Iceland said "Earlier today, the Icelandic Glitnir Bank and India's Bhilwara Energy signed a Memorandum of Understanding on cooperation with regard to the development of geothermal energy in India. This is truly a promising cooperation, pooling expertise from our two countries in the crucial field of the renewable energy".

"Glitnir had successfully implemented a project in China where we brought expertise and funded the project to heat a district in the Xian Yang province in China. We believe similar projects can be developed in India" said Magnus Bjarnason, Executive Vice President of International Banking in Glitnir.

"India is a very exciting market for Glitnir especially in the Energy field given the projected growth of Energy demand in India, India needs all sources of energy especially renewable and green sources of energy like geothermal. We are delighted to partner with LNJ Bhilwara Group who has demonstrated their capacity in efficiently developing power plants in India" says Árni Magnusson, Managing Director of Sustainable Energy in Glitnir.

"We are eager to get started and develop geothermal power plants in India. LNJ Bhilwara Group was the first to develop a 100MW private merchant hydro power plant ahead of schedule and budget in India and has set new levels of realization in Hydropower Business in India. Bhilwara is continuing its growth and diversifying in Green Energy, besides the established leadership in Hydro business. It has set up 4.2 MW Wind Power Plant in Jaisalmmer and is now pursuing development of Geothermal Energy in India and Nepal. Bhilwara Group is developing a large number of Hydro Power plants in Punjab, Himachal Pradesh and Arunachal Pradesh besides in the neighboring countries of Nepal. We are looking forward to the collaboration with Glitnir and develop the first geothermal plant in India" said Awadh B Giri, CEO -Power of LNj Bhilwara Group.

For further information:

Magnus Bjarnason, Executive Vice President, International Banking, Mobile: +354-844 4523

Bjørn Richard Johansen, Managing Director Corporate Communications, Glitnir. Mobile: +47-800 100 and e-mail:

Bala Kamallakharan, Executive Director, Glitnir. Mobile: +354-844-4011 and email:

About Glitnir Bank

The Nordic based Corporate Investment bank and financial services group Glitnir offers services including retail, corporate and investment banking, stock trade/brokerage and capital management. Glitnir is a leading niche player in three global industry sectors:seafood/food, sustainable energy (geothermal energy) and offshore service vessels. Glitnir is one of the largest equity brokers in the in the OMX stock exchange in Sweden, Finland, Denmark and Iceland, as well as on the Oslo Stock Exchange in Norway and the Stock Exchange in Moscow in Russia. Glitnir operates in Iceland, Norway, Sweden, Denmark, Finland, the U.K., Luxembourg, Russia, Canada China, and U.S. (Glitnir Capital Corporation). Glitnir is listed on the Icelandic Stock Exchange (GLB). For more information:

About LNJ Bhilwara group

The LNJ Bhilwara Group, today enjoys a strong global presence with major interest in Textile, Graphite Electrodes, Power Generation and Consulting Business. With a turnover of around USD 700 million, employing over 25,000 people, it is poised to establish leadership position in Power Generation and Power Engineering Consulting Business. Its power Business comprises of Bhilwara Energy Ltd., Malana Power Company Ltd., AD Hydro Power Ltd. and Indo Canadian Consultancy Services Ltd. The group is currently executing hydropower projects totaling 1500 MW and envisages an investment to the tune of USD 4 billion in the ongoing initiatives. The journey of the LNJ Bhilwara Group began in 1961 when the Group founder, Mr. L.N. Jhunjhunwala established a textile mill in Bhilwara, Rajasthan. Today that single textile mill has expanded into several textile mills; the group has diversified strategically and stands proud as a multi-product and service conglomerate. Acknowledged as pioneers across most industries that we are involved in, the group, as a whole has also established itself as a member of the premier league, which comprises the top 50 Indian business groups.

Mr. Awadh B. Giri, and Mr. Bala Murughan Kamallakharan

Contact Information

  • For further information:

    Magnus Bjarnason
    Executive Vice President, International Banking
    Mobile: +354-844 4523

    Bjørn Richard Johansen
    Managing Director Corporate Communications
    Mobile: +47-800 100

    Bala Kamallakharan
    Executive Director
    Mobile: +354-844-4011