The government approved a Rs 15,000-crore foreign direct investment (FDI) proposal. The proposal is for infrastructure investment from Anchorage Infrastructure Investment Holding Ltd, a subsidiary of a Canadian pension fund. Cabinet Committee on Economic Affairs (CCEA) accepts the FDI proposal for investment in infrastructure and construction-development industries.
Transport and logistics, as well as downstream investment in the airport sector and aviation-related industries and services, may be among them.
According to an official statement, the transaction also comprises the transfer of a stake of Bangalore International Airport Limited to Anchorage. And Rs 950 crore investment by the 2726247 Ontariao Inc in Anchorage Infrastructure Investment Holding Ltd. The 2726247 Ontariao Inc is a wholly-owned subsidiary of OAC, which is the administrator of OMERS. It is one of Canada’s largest defined benefit pension plans.
What are the benefits involved.
The investment will provide a significant boost to the infrastructure and construction industries, as well as the airport industry. It will boost the Indian government’s ambition to construct world-class airports and transportation infrastructure through private partnerships. CCEA is headed by the prime minister of India. It is a group of members in which many ministers work on detailed demands for grants and the outcome budget.
The investment will also provide a major boost to the recently announced National Monetisation Pipeline (NMP). It will help fund leasing out of state-owned infrastructure assets to private operators. This includes assets such as highways, trains, airports, sports stadiums, power transmission lines, and gas pipelines.
According to a statement from Anchorage Infrastructure Investment Holding Ltd., The company is planning to invest downstream in several of the sectors covered by the NMP.
The statement adds, that the investment will also result in direct job creation. Since the sector in which Anchorage Infrastructure Investment Holding Ltd proposes to make downstream investments are capital- and employment-intensive. Moreover. the investment will also create indirect jobs in the construction and related industries.