'Over 60% FDI in every MoU': Devendra Fadnavis defends signing deals with Indian firms in Davos

Maharashtra Chief Minister Devendra Fadnavis has defended the state government's decision to sign memoranda of understanding at the World Economic Forum in Davos, saying every agreement inked there involves significant foreign direct investment, with none having less than a 60 per cent FDI component.

Responding to criticism over signing MoUs with Indian companies abroad, Fadnavis said the structure of modern investments is often misunderstood. He addressed questions raised by opposition leaders, including Shiv Sena (UBT) MP Sanjay Raut, who described the Davos trip as a "picnic" and questioned why such agreements could not be signed in Mumbai.

"So, I will tell you, none of the MOUs which we signed in Devos has less than 60% of FDI. All are more than 60% FDI Each and every MOU," Fadnavis said while speaking to Business Today Group Editor Siddharth Zarabi and India Today TV Consulting Editor Rajdeep Sardesai on the sidelines of WEF in Davos. 

He said Indian companies increasingly act as domestic partners in projects that are largely funded by foreign capital. "People don't understand how the market plays. Our Indian businesses reach out to the foreign funds and collaborate with them. So their equity or their contribution is 20-30%. Entire money comes from a foreign partner, which comes as FDI," he said.

Fadnavis said Davos provides a practical advantage for closing such agreements because of the presence of global decision-makers. "Mostly they are very eager to sign it here. Because during Davos, all these big players, they hold their board meetings here or near Switzerland. So somebody from their board is present," he said.

The chief minister also addressed criticism surrounding an MoU linked to Lodha Developers, after it was pointed out that a minister in his government was connected to the deal. "He (Lodha) is bringing land. And who is investing in it? Four major data center companies...so this entire project of 1 lakh crore, 80% money is coming as FDI," he said.

Fadnavis compared the scale of the proposed project with other large investments in the sector. "The biggest investment hyperscaler is in Andhra Pradesh. The second one is this," he said, referring to Lodha's data centre park. 

Fadnavis said the project would have a transformative impact on India’s data centre ecosystem. "I must give credit to Mr. Lodha. The investment which he is bringing is going to change the data center space of India. Because it is such a hyperscaler and it is such an AI enabled data center that it is one of its kind," he said.

Mumbai-based Lodha Developers signed an MoU with the Maharashtra government in Davos to invest Rs 1 trillion to develop a 2.5 gigawatt data centre park in the state. The facility, once completed, is expected to be the largest data centre in India.