Indo-US Forum to set up five billion dollar infrastructure fund

New Delhi, Aug 21 (UNI) The Indo-US Forum has recommended setting up of a five billion dollar fund for infrastructure development in India, the government informed the Rajya Sabha today.

Replying to Prof Alka Balram Kshatriya and Mrs Shobhana Bhartiya, Minister of State for Finance P K Bansal said the Infrastructure Development Finance Company Limited, Citigroup Inc, India Infrastructure Finance Company Limited and Blackstone Group Holdings had launched such a fund spelling out the modalities.

He said the plan was to deploy two billion dollars in equity capital and the rest of the money to be used in long term debt financing with maturities exceeding ten years. The equity fund of two billion dollars would be raised in two tranches.

The equity financing programme of three billion dollars would be managed by IDFC to be invested in greenfield, brownfield and operating projects primarily in roads, power, airports, ports and industrial and commercial infrastructure.

UNI