NEW DELHI — The Cabinet Committee on Economic Affairs approved the foreign direct investment proposal of Anchorage Infrastructure Investment Holding Ltd, proposing an investment of INR 15,000 crore ($2020 million) in the country.
“An investment holding incorporated specifically of investment in infrastructure and the construction-development sectors which may include transport and logistic, etc. along with downstream investment in the airport sector and aviation-related businesses and services.” said the Cabinet Committee on Economic Affairs in a press release.
Anchorage Infrastructure Investment Holding Ltd. is an arm of Canada’s Fairfax Financial Holdings Ltd, which indirectly holds a stake in Bangalore International Airport.
The investment is expected to significantly boost the infrastructure and construction sectors and the airport sector.
#Cabinet approves FDI proposal of M/s Anchorage Infrastructure Investment Holding Ltd, proposing an investment of Rs.15000 crore in India.
— MIB India #AmritMahotsav (@MIB_India) August 25, 2021
Officials said it is also a significant boost to the recently announced National Monetisation Pipeline.
National Monetization Pipeline provides ‘visibility on the volume of assets to be monetized and the potential value that can be unlocked.
Despite the fiscal pressures, the government’s commitment to scale up infrastructure investments reflects the critical role of infrastructure on the overall economic growth and recovery and expected multiplier effect.
National Monetization Pipeline shall also serve as a medium-term roadmap of the potential financing opportunities and drive preparedness of public sponsors as well as private sector/ institutional investors towards financing the infrastructure gap.
“The investment will considerably substantiate the government of India’s plan to develop world-class Airport and transport-related infrastructure through private partnership,” said the Committee.
“The investment will also be a significant boost to the recently announced National Monetization Pipeline, as it will help fund leasing out of state-owned infrastructure assets, which involves handling assets like roads, railways, airports, sports stadiums, power transmission lines, and gas pipelines to private operators.”
A government release said that investment also includes transferring the share of Bangalore International airport Limited to Anchorage and investment of INR 950 crore ($128 million) in Anchorage Infrastructure Investment Holding Ltd by 2726247 Ontariao Inc., a wholly-owned subsidiary of the administration corporation of the Ontario Municipal Employees Retirement System, a Canadian pension fund.
The investment will considerably substantiate the government’s plan to develop the world-class airport and transport-related infrastructure through private partnerships.
The release said Anchorage Infrastructure Investment Holding Ltd. is proposing to make downstream investments in capital and employment-intensive sector. The acquisition will also generate indirect employment during construction and ancillary activities, it added.
“The investment will also lead to direct employment generation as the sector in which M/s Anchorage Infrastructure Investment Holding Ltd. is proposing to make downstream investments are capital and employment-intensive sector,” said the Committee.
“The investment will also generate indirect employment during construction and ancillary activities.”
(With inputs from ANI)
Edited by Saptak Datta and Ritaban Misra
The post Indian Cabinet Committee On Economic Affairs Approves Foreign Investment appeared first on Zenger News.