Canadian pension funds interested in Indian infrastructure sector

MUMBAI: Canadian pension funds are interested in investing in the infrastructure projects in the country, provided regulatory hurdles are addressed by the government.

"Big pension funds from Canada are interested to invest in infrastructure sector in India. But, the concerns relating to regulatory issues should be addressed by the government," Canada-India Business Council vice-chairman Peter Sutherland said here over the weekend.

The recent steps such as allowing FIIs to invest in infrastructure are steps in the right direction, he said.

The government plans to invest around USD 1 trillion in the infrastructure in the next five year plan beginning April. The government expects to garner around 50 percent of the proposed investment from private sector through public-private partnership projects. Referring to sectors, Sutherland said Canadian investors are looking at all infra sectors including ports, roads and power.

He also said segments in services sector like education, financial services, research and development are of interest to his investors.

"We are also looking at collaboration in the hydrocarbon, oil and gas along with other conventional energy segments with India," he said, without divulging the amount of investment.

Last month, the government has taken some measures like raising FII investment in infrastructure sector along with lowering of lock-in period to attract more investment in the infrastructure sector.