Khazanah, IDFC form SPV to facilitate financing of India’s highway construction

NEW DELHI: The Government's investment arm, Khazanah Nasional Bhd, has set up a special purpose vehicle (SPV) with a subsidiary of India's Infrastructure Development Finance Company, with an equity base of Rs830 crores (RM478mil).

The SPV will facilitate the financing of national highway construction projects, India's Minister of Commerce, Industry and Textiles, Anand Sharma said at the India-Malaysia Chief Executive Officers Forum.

Recalling his visits to Malaysia in July 2010 and February 2011, Sharma said that he had sought investment from Khazanah Nasional Bhd into the Indian infrastructure sector through a collaborative venture with IDFC.

He said during his visits, he identified priority sectors of engagement including roads & highways, railways, airports, information technology & information technology enabled services, biotechnology, tourism, health services and joint-venture projects in third countries.

Last year, IDFC and Khazanah have agreed to enter into a joint venture to set-up a dedicated infrastructure development company with the focus on India's road sector.

Khazanah's equity share in the proposed joint venture was 80.1% while the balance would be held by IDFC.

Malaysian investment in India, todate, stood at US$7.8bil (RM24bil) while Indian investments in Malaysia was about US$3bil (RM9.2bil).

Indian investments in Malaysia was growing steadily, he said.

At present, there are more than 100 Indian companies, including 61 Indian joint ventures operating in Malaysia.

In the last three years, about US$2bil (RM6bil) were invested by Indian companies, making them the seventh largest investor in Malaysia, he added. - Bernama

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