The India Auto Ancillary Fund (IAAF) Summary Of Project Information (SPI)       Project Name    India-The India Auto Ancillary Fund              Region    Asia        Sector       Project No008143   Projected Board DateJune 14, 1997   Company NameIL&FS Venture Corporation Limited (IVC)    Technical Partner and/or Major Shareholders     	Local sponsor:  Infrastructure Leasing and Financial Services 		     Limited (7%)   	Mahindra and Mahindra (7%)   	Bank of India (7%)   	IFC (15%)	   	Indian institutional investors (7%)   	Offshore institutional investors (15%)   	    		    Project Cost Including proposed IFC investment     	Initial corpus of the Fund of at least $42 million.  IFC is expected to take up to 15% of the equity or an amount equivalent to US$6.5 million.      Location of project and Description of site     	IVC, the Fund Management Company, is located in Bangalore, India. IVC will make direct investments in auto ancillary and component companies throughout India.      Description of Company and Purpose of Project     The project involves the establishment of an auto ancillary fund of corpus of at least US$42 million that will focus on investment opportunities in Indias rapidly growing auto ancillary sector. The Fund is being promoted by IL&FS (Infrastructure Leasing and Financial Services) Venture Corporation (IVC), a fund management company currently managed by IL&FS, an Indian non-bank financial institution engaged in commercial development of infrastructural services and provision of financial services, including investment banking, asset management, venture capital management, financial advisory and project development, and infrastructure project promotion and finance.    The liberalization of restrictions on capacity, licensing requirements and foreign ownership has spurred growth in Indias automotive industry, and with it the ancillary sector with sales of US$2.6 billion in 1995/96 and with growth averaging over 26% p.a. in the last three years.  There has been a spate of joint ventures in the last three years between Indian companies and the automobile majors intent on establishing a presence in the Indian vehicle market.  Indications are that the new and existing auto players in India plan to operate from a platform of global competitiveness and will require from the ancillary companies they source from components that are internationally competitive in quality, price and delivery. The proposed Fund seeks to exploit investment opportunities in the new environment through direct equity and quasi-equity investments in ancillary companies undertaking expansions, upgradation as well as in greenfield projects.     Environmental Category and Issues     	  This is a Financial Intermediary (FI) category project.  The Fund will be required to undertake an environmental review of eligible investee companies operations.  IVC will assign two officers to undertake environmental reviews of investee companies.  In addition, IVC will provide IFC with an annual environmental monitoring report.        Date SPI sent to PIC     May 14, 1997      For Additional Information contact:  Corporate Relations Unit -   telephone: (202) 473-7711   facsimile: (202) 974-4384