Modi government plans $4-5 billion infrastructure fund; Japanese & Korean investors show interest

NEW DELHI: In an attempt to provide the much-needed boost to the infrastructure sector of the economy, the Narendra Modi government is planning a multi-billion dollar infra fund to push investments, reported ET Now.

According to ET Now, the Road Ministry has already begun discussions with potential investors and that the fund size could be anywhere between $4-5 billion. "The idea is to boost infrastructure projects in India, particularly road projects," reported ET Now.

"Japanese and Korean investors have already showed interest in participating in the fund. A PPP model will be followed for the projects," the channel said. Union Road Transport, Highways and Shipping Minister Nitin Gadkari is expected to meet the likely investors in the next few weeks.

The fund could see the light of the day very soon, with the government working on a less than 6 months timeline, ET Now said. The minimum commitment guarantee to be given to investors could be 3%, it added.

Last week, ET reported that slow-moving highway projects are likely to be kickstarted with the highways ministry planning to review all ongoing projects along with all stakeholders.

Nitin Gadkari, held a meeting with the highways ministry and the National Highways Authority of India ( NHAI) officials recently where it was decided that regionwise reviews of projects will be held, especially those that are languishing.

The ministry will also take up the issue of land acquisition costs as per the new Land Act and apprise the minister of the difficulties it will impose on the highways sector and the possible alternatives. These are part of an action plan thrashed out at the meeting held at the NHAI headquarters on May 30.

(With inputs from ET Bureau)