Govt to firm up plans for Infrastructure Trust Fund soon
Quotes

Govt to firm up plans for Infrastructure Trust Fund soon

Last Updated: Tuesday, November 19, 2013, 21:26
 
 Comment 0
 
Govt to firm up plans for Infrastructure Trust Fund soon
'New Delhi: The Finance Ministry is firming up plans for a new Infrastructure Trust Fund aimed at accelerating the flow of long-term investments in various projects.

"We are at the moment working on a new structure called Infrastructure Trust Fund. We will finalise its modalities soon," Sharmila Chavaly, Joint Secretary (Infrastructure) in Ministry of Finance said at event organised by CII.

She said the fund is expected "in the nature of REIT (Real Estate Investment Trust), which is prevalent in countries like Singapore, Hong Kong and USA".

"Under the structure, underlying revenue of projects will be transferred to a trust and the trust will then issue units to investors, including foreign investors, who then want to buy the units," Chavaly added.

The government has been looking at various options to help fund the infrastructure sector which is estimated to require around USD 1 trillion investment by 2017.

Recently, India Infrastructure Finance Company Ltd (IIFCL) launched its first Infrastructure Debt Fund (IDF) with targeted initial corpus of USD 1 billion.

The IDF, which was proposed in the Union Budget for 2011-12 fiscal, is aimed at accelerating and enhancing flow of long term debt for funding infrastructure development.

Finance Minister P Chidambaram had recently said in Washington that the total investment requirements for sectors including power, roads, ports and civil aviation during the 12th Plan period (2012-17) is projected at USD 1 trillion.

Nearly half of this amount is expected to come from the private sector.

Chidambaram had said that there is a huge opportunity for foreign investment in India as the government focuses on rapid infrastructure development in the country.



PTI

First Published: Tuesday, November 19, 2013, 21:26


Comments


comments powered by Disqus
India`s top ten billionaires
India`s top ten billionaires
Pradhan Mantri Jan Dhan Yojana - In Pics
Pradhan Mantri Jan Dhan Yojana - In Pics
Apple Smartwatch unveiled
Apple Smartwatch unveiled
Apple iPhone 6, iPhone 6 plus
Apple iPhone 6, iPhone 6 plus
Samsung Galaxy Tab 4 Nook
Samsung Galaxy Tab 4 Nook

Web Wrap
Contact Us : Privacy Policy : Legal Disclaimer
Copyright © Zee Media Corporation Ltd. All rights reserved