A renewed interest in the infrastructure sector sets in
There is a renewed interest in the infrastructure sector. Piramal Enterprises committed $1 billion in a tie-up with the Dutch pension fund APG Asset Management last month for the investment in the infrastructure sector. Now, three home-grown private fund managers – IL&FS, L&T Infrastructure Finance and IDFC Alternatives - are gearing up to raise $2.5 billion over the next six to eight months.
This uptick in the infrastructure sector is good for the growth matrix of the nation. Besides, another $2.5 billion is expected to be dedicated for India out of the estimated $7.5 billion which is currently getting raised by global fund managers like Morgan Stanley Infrastructure, KKR & Co and J P Morgan Chase & Co for their global infrastructure investment funds.
An L&T Infra Finance spokesperson mentioned that his company is expecting a $1-billion fund raising. He also stated that his firm had a first closing of about Rs. 500 crore from domestic investors. And now they are assessing the interest of the international investors given the change in their outlook towards India after the formation of a stable government at the center. The firm will begin the formal process after completing the first level assessment.
The new government is taking steps to revive the infrastructure sector. $150 billion of equity as well as mezzanine funding is required to meet its investment target of $1 trillion by 2017. Most of this capital will be required in power, ports, roads and renewable sectors.
Source- Business Standard
APG Asset management, Dutch pension fund, IDFC Alternatives, IL&FS, Infrastructure, KKR & Co, L&T Infrastructure Finance, Morgan Stanley Infrastructure, Piramal Enterprises
