GOVERNMENT OF REPUBLIC OF EL SALVADOR AND LAKSHMI CAPITAL SIGN THE MOU

GUATEMALA CITY (TIP): Over the past decade, India‘s remarkable achievements in successful infrastructural development have garnered global attention and inspired Indian companies to venture beyond their conventional roles of manufacturing and exporting finished goods. India’s rapid infrastructural progress serves as a beacon for other nations, with Central American governments eagerly embracing Indian companies to invest in and bolster their own infrastructural projects. Recognizing the strategic significance of the Central American region, companies like SRAM & MRAM have shifted their focus towards engaging in transformative infrastructure endeavors in Guatemala and El Salvador. This shift has led to the investment in ten impactful projects across these nations through their subsidiary, Lakshmi Capital, signaling a new era of collaboration and development.

In a significant stride toward strengthening infrastructure and economic development in El Salvador, Lakshmi Capital, and the Ministry of Public Works and Transportation of the Republic of El Salvador signed a Memorandum of Understanding in San Salvador on 16 February 2023 for construction of 22 km metro line project in San Salvador. The MoU was signed between Minister Romeo Rodríguez of Ministry of Public Works, Government of Republic of El Salvador and Transportation and Mr. Russell Alexander Luther Rodas of Laxmi Capital in the presence of Ambassador of India in Guatemala, Dr. Manoj Kumar Mohapatra. The metro line project aims to invigorate the economy and modernize transportation infrastructure in the country. Following a comprehensive pre-feasibility study, the decision was made to embark on the creation of a subway system in San Salvador, leveraging international investment for optimal outcomes.

It is imperative to underscore that the initial proposal, initially spanning 11 kilometers, was subsequently augmented to an impressive 22 kilometers by the El Salvadoran Government. This remarkable expansion stands as a testament to India’s growing reputation globally and steadfast support, alongside the unwavering commitment and enthusiastic dedication showcased by Lakshmi Capital in propelling infrastructure development and fostering sustainable progress in El Salvador.

The metro line project based on BOT Modal, outlines the Ministry of Public Works and Transportation’s role in providing pre-feasibility analyses, designs, and legal frameworks, while Lakshmi Capital will offer technical expertise and investment mechanisms. The signing ceremony followed a series of meetings convened by the Embassy of India in Guatemala between the Ministry of Public Works and Transportation and Lakshmi Capital, underscoring their shared dedication to the project’s successful execution. Both parties will begin exchanging crucial information, marking the start of the analysis, study, and proposal stages of the initiative.

The metro line project stands at the forefront of reshaping transportation infrastructure in El Salvador, presenting Indian companies with a unique opportunity to make a lasting impression in the Central American region. This collaboration resonates with a mutual dedication to fostering economic advancement and sustainable growth. Moreover, this pivotal project serves as a precursor to a multitude of forthcoming endeavors, such as supplying buses, constructing the dry corridor, and implementing a solar power project. Discussions for these ventures are currently at an advanced stage, indicating the potential for additional Memoranda of Understanding to be signed in the near future.