The National Investment and Infrastructure Fund (NIIF) and global transport infrastructure operator Roadis have jointly announced creation of a platform to invest up to USD 2 billion of equity in road projects in India.
According to an official release, the platform would target toll-operate-transfer models and acquisitions of existing road concessions. It should be noted that after moving at a slow pace for over two years since its inception in December 2015, NIIF has tied up with several investors and is bidding for assets. Last year, NIIF announced its venture with Dubai-based ports operator DP World to create a fund to invest up to $3 billion of equity in India’s transport and logistics sectors. NIIF Master Fund and DP World have acquired 90 per cent of Continental Warehousing through a jointly created platform company, Hindustan Infralog (HIL). This JV was also the successful bidder for a free trade zone project in JNPT, Mumbai. Roadis is a wholly-owned arm of the Public Sector Pension Investment Board, one of Canada’s largest pension funds. NIIF’s role in infrastructure funding has acquired significance in recent years, given that most public-sector banks are struggling to cope with toxic assets. Also, IL&FS, a key infrastructure refinancer until last year, has been ridden by the crisis.