The Government on Tuesday said that they were anticipating active participation from foreign pension funds for long-term investments in the country’s infrastructure projects.
“The Government is expecting financing from these global pension and insurance funds at a lower interest rate. It is better than taking loans from banks, as the interest rates are much higher,” said Union Minister of Road Transport and Highways Nitin Gadkari. Gadkari was speaking at a CII conference in the Capital.
“We invited foreign pension funds to participate in the infrastructure sector in the country and we are very hopeful of positive responses,” he said.
The Centre has given an allocation of Rs42,000 crore to the roads sector during the current financial year (2015-16).
The Government is expecting financing from these global pension and insurance funds at a lower interest rate, when compared to the current borrowing rates, said the Minister.
Earlier, he had said that investments to the tune of Rs10 trillion are expected in the highways and shipping sectors by 2019.
Meanwhile, on the road building target, he said, “We are doing 12 kms per day of road construction which will be scaled up to 30 kms per day after two years.”
“A better redressal of the concerns of Indian companies will ensure that the current investments begin to see light and this will provide necessary impetus to start re-looking and kick-starting investment in infrastructure,” said Prashant Ruia, chairman, Essar Oil, who was present at the same event.