The Chinese mining industry has secured a $20 billion investment deal with Indian banks, making it one of the largest private sector investment deals in the country’s history.
The deal is the latest in a series of private sector deals with Indian government-owned banks in the last two years, following a series involving the $1.6 billion deal struck in May.
In a joint statement on Thursday, the two sides said the deal, which was signed in New Delhi by the three parties and the government of the Indian state of Gujarat, would help boost economic growth in the two countries.
The banks will be allowed to lend up to 100 percent of the project’s value and will be entitled to a 90-day grace period after which they will have to pay back the debt.
The agreement, which is subject to regulatory approvals, is expected to create 1,500 jobs and boost the overall growth rate of the Chinese mining sector, the companies said in the statement.