India, UK to sign pact on infrastructure investment on sidelines of G-20 Finance Ministers meet

NEW DELHI: India and the UK are going to sign an agreement on infrastructure investment, raising of funds, project financing, among others, on the sidelines of the G-20 Finance Ministers meeting later this month in Shanghai.

"We will be signing MoU in terms of collaboration between the UK and the Indian government at the G-20 Finance Ministers meeting which is to be held at the end of this month," Economic Secretary to the Treasury Harriett Baldwin said at roundtable organised by IIFCL here.

The G-20 Finance Ministers and central bank governors meeting is scheduled to be held on February 26-27 in Shanghai.

"Formal collaboration between the UK and the Indian government to build on the work that has already been done in terms of how we can put together the skills from the UK professional service sector, the experience that we have in terms of infrastructure investment in terms of public private partnership, in terms of project financing and formalise that in terms of working relationship," she said.

"It (the agreement with India) would cover the raising (funds) which we can be of most assistance. So, I am sure that the things along this line are very much positively discussed ahead of finalising... it will be a government to government agreement," she added.

Besides, Baldwin said, both countries agreed to explore ways to encourage increased investment in infrastructure with the aim of developing an India-UK partnership fund under the umbrella of India's flagship infrastructure investment initiative, the National Investment and Infrastructure Fund (NIIF).

Speaking about IIFCL, Deputy Managing Director Sanjeev Kaushik said the company has been appointed as investment manager for NIIF for the interim period.

IIFCL was the first issuer of masala bonds, he said, adding, "We are still in fact in dialogue with the ADB and World Bank if they could help us do that and then customise it for us."

Masala bonds are instruments which are rupee-denominated and sold only to offshore buyers.