The Cabinet Committee on Economic Affairs on Wednesday cleared a foreign direct investment (FDI) proposal to invest up to ₹15,000 crore in Anchorage Infrastructure Investment Holding (AIIH) Ltd., a firm incorporated to invest in the country’s infrastructure and construction development sectors.
The government said the investment would prove to be a “significant boost to the recently announced National Monetisation Pipeline (NMP)” as AIIH had proposed downstream investments in some of the sectors covered under the NMP. This would include investments in leasing out of state-owned infrastructure assets like roads, railways, airports, sports stadiums, power transmission lines and gas pipelines to private operators.
The investment proposal also entails the transfer of shares of Bangalore International Airport Limited to Anchorage, and an investment of ₹950 crore in AIIH by 2726247 Ontario Inc., a wholly owned subsidiary of the administrator of OMERS, one of Canada’s largest pension funds.
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“The investment will be a major boost to the infrastructure and construction sector and also to the Airport sector,” the government said in a statement. “The investment will considerably substantiate government of India’s plan to develop world class Airport and transport related infrastructure through private partnership”, with the FDI proposal generating direct and indirect jobs, it added.