Promoting Prosperity in India
After a successful expansion to China in the field of geothermal energy, Glitnir is entering India. This time around however the venture will be approached in a slightly different way.
"India will be a poster-child for Glitnir´s CSR initiatives in emerging markets," explains Bala Kamallakharan, Glitnir's Executive Director of Asia & Latin America Region and Chief Representative in India, who leads the project. The initiative is founded on corporate responsibility and the objective is to develop eco systems in both the sustainable seafood sector and the field of geothermal energy.
The difference with the Indian project is that the bank is in discussion with United Nations Development Program (UNDP) on possible co-operation in sustainability projects that will be used by the bank in the future. "This time, Glitnir will formalise its expansion by CSR founded guidelines and also communicate it to the public," he explains.
Glitnir's business case for India is twofold. Firstly the bank will bring Icelandic fishing expertise to India to help the local industry gain more control over their fishing industry. It will also seek to raise awareness of sustainability issues and educate fish farmers on sustainable fishing practices. Secondly the bank has formed a joint venture with The LNJ Bhilwara Group, a leading Indian corporation with interest in power generation, to develop geothermal power plants in India and Nepal.
"Geothermal energy is a non-existent industry in India," says Bala. "For about 25 years there has been talk about geothermal opportunities in India but absolutely nothing has been done." In September 2007, Glitnir visited the country and met with partners and governmental officials. "Now, local authorities want to move forward in building a geothermal plant. In a matter of six months we've mobilised the Indian government to act. This is the role that Glitnir plays." Bala sees huge potential in India but he emphasises that nothing will happen unless the fundamentals have been developed.
By possible co-operation with UNDP, Glitnir would receive valuable advice in forming its CSR initiated project charter and a sustainable strategy for this emerging market. "In India we will mainly address two of the United Nations' (UNDP's) millennium development goals," explains Bala, "to ensure environmental sustainability and eradicate extreme poverty. By partnering with the UN, we bring legitimacy, credibility and global perspective to a local problem in India and I see this project as promoting prosperity in a sector Glitnir understand."
For Glitnir, corporate responsibility in India will surely be an ambitious and interesting case study, not only for the bank itself but the entire international community. "We are taking an assertive action in this initiative and believe we play a role in generating a positive change in the world," says Bala.