Piramal Enterprises Limited to invest 1 Billion in the country’s infrastructure sector
Ajay Piramal is all set to make his boldest bet on the country’s battered infrastructure sector under the flagship Piramal Enterprises Limited (PEL). His investments in Vodafone India did fairly well and now with the Modinomics wave, he feels that infrastructure investments should be the next big thing.
Piramal Enterprises Limited (PEL) is tying up with the world’s second largest pension fund APG Asset Management (APG) to invest a billion dollars in India’s roads, ports, airports, power plants, telecom towers or even the education and healthcare sector.
It is expected that the 50:50 Joint Venture (JV) will largely invest in debt or convertible instruments.Both PEL and APG are initially bringing in $375 million (Rs 2250 crore) each and over the next 3 years plan to ramp up their investment to $1 billion (Rs 6,000 crore).
A formal announcement of the JV will be made today. PEL expects that with this move the other foreign investors will be attracted towards investing in the infrastructure sector in India.
Foreign investor interest had started diminishing between 2011 and 2014 because of disputes over land acquisitions, lack of raw materials and environmental clearances. In the budget when the finance minister welcomed FDI in real estate, infrastructure, manufacturing, defence, insurance and other sectors, India Inc. is trying hard to lure the foreign investors again to be a part of India’s growth bandwagon.
Source- The Economic Times
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