Govt to consider allowing NRIs to invest in infrastructure bonds

NEW DELHI: The Government on Friday said it will consider allowing NRIs to invest in infrastructure bonds to facilitate greater inflow of funds for key projects and ensure their participation in the country's development.

Overseas Indian Affairs Minister Vayalar Ravi said the Government needs USD 435 billion for various infrastructure projects and allowing the NRIs to invest in such bonds will help it in arranging the funds.

"It is a very good proposal and we will consider it. We will need time to finalise the whole thing," he said.

The idea was floated by several NRIs at the Pravasi Bharatiya Divas and later they found support from Road Transport and Highways Minister Kamal Nath.

Ravi said Finance Ministry and Reserve Bank of India will have to take a final decision on it.

"Allowing the NRIs to invest in the infrastructure bonds will create in them the feeling of deeper sense of involvement in India's development process," he said.

Speaking at the conference, Nath requested Finance Minister Pranab Mukherjee to look into the issue of allowing the NRIs to invest in infrastructure bonds.

If these bonds come up, they would be the second major initiatives of this type after SBI' Resurgent India Bonds floated in late 1990s for raising resources from overseas players for infrastructure sector in India.