Indian infrastructure needs overseas funds : Kola Luu

Singapore, Apr 3 (UNI) India would need to have access to private sector and overseas funding to finance its infrastructure and property sector, said an Executive Director of Monetary Authority of Singapore, the de facto central bank of the country, Kola Luu.

''Obtaining adequate funding will be critical for India to achieve its projected growth rate as property and infrastructure assets form the foundation for economic development,'' he said during the opening ceremony of the Investment Opputunities in Indian Real Estate and Infrastructure 2007 here.

Mr Luu said the ability for project developers to attract global investors will be critical in sustaining the rapid growth in Indian economy.

Meanwhile he stressed Singapore provides Indian companies a strong value proposition as a gateway to raise global capital.

''The opportunities here are tremendous, there is an alternative for Indian companies to reach global investors via Singapore - the ability to finance via a trust or fund structure to tap a different pool of investors, the base to access specialist fund managers and investors, and the expertise of project sponsors and financiers for infrastructure and property projects.'' He highlighted that Singapore was now overseas hub for 2,500 Indian companies, including eight Indian banks, three capital market players and a growing cluster of leading Indian specialist fund managers such as Reliance Asset Management.

''India and Singapore has enjoyed strong economic linkages, and we expect this to continue. Bilateral trade has reached over 19 billion Singapore dollars per annum,'' Mr Luu noted, underlining the increasing trade facilitated through the Comprehensive Economic Co-operation Agreement (CECA), which was signed between the two countries in 2005.

''Underpinning these economic ties are deep private sector relationships. Indian companies are looking to grow overseas, and more often than not, they base themselves in Singapore for their Asian expansion,'' he said.

About 100 delegates from Singapore and India attended the three-day conference here.

UNI