PLL has been listed in the National Stock Exchange and in the Bombay Stock Exchange since January 2006. (46% of PLL’s equity is publicly traded). The sponsor, Atul Punj, has a 53.9% stake in the company. Foreign institutional investor holding is at 18.7%, while the balance is distributed among the public (5.86%), Banks/Financial Institutions (FIs) (2.46%) and other corporate bodies (18.14%).

The proposed project cost includes corporate financing needs of $50.0 million. Under this proposed project, IFC would provide to PLL an IFC A loan for up to $50.0 million.

50.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	50.0
Equity

* These investment figures are indicative

The company is headquartered in Gurgaon, India. However, as the proceeds of the loan are for corporate financing needs the money will be utilized across all regions where PLL has existing operations.

IFC’s involvement in the project is expected to have a development impact in terms of:

- The company’s expansion program will create new employment both directly and indirectly in India and abroad. A significant number of employees are also expected to be added in the supply stream and in ancillary activities. In addition, temporary employment will be provided to local labor in the host country during the construction phase of the new infrastructure.
- Promoting the mobilization of corporate financing to the company, at a time when the Government has announced an aggressive plan to increase the proportion of infrastructure development through public private partnerships (PPPs) like BOT projects.
- The company has implemented HIV/AIDS policy and a HIV/AIDS awareness program, for its own employees, labor and contractor’s laborers. IFC and PLL will explore opportunities to work together towards deepening and expanding PLL’s HIV/AIDS awareness initiative.

The Indian construction industry has just entered a phase of fast paced growth and it is imperative that both existing and emerging players in this sector are able to successfully manage the environmental risk associated with such large scale infrastructure project execution. The company will embed IFC Performance Standards in its EHS management system and hence set benchmarks for other players to follow.

IFC will work with the company in further expanding the geographic scope of operations, particularly south-south investments.

This corporate investment proposed by IFC is a category B project according to IFC’s environmental and social review procedure because a limited number of specific social and environmental impacts may result, which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The following potential environment, health and safety and social aspects of the project were analyzed:

- environment and social assessment and corporate environmental, social, and health and safety management systems; and
- labor and working conditions, including management of occupational health and safety.

A summary discussion on the social and environmental aspects of relevance to the project including the company’s plans to address these impacts, has been provided in the Environmental and Social Review Summary (ESRS) prepared by IFC including an Environmental and Social Action Plan (ESAP), both of which have been publicly disclosed at IFC’s website. The company has made available on its website EHS Policies, EHS management system certification and information of safety awards. The company will also make available on this website, the measures it proposes to implement so as to conduct its business in accordance with IFC’s Performance Standards. This information is available at the following website: http://www.punjlloyd.com/main.asp?p=hse.htm