The Cabinet Committee on Economic Affairs on Wednesday approved the foreign direct investment (FDI) proposal for an investment of up to Rs 15,000 crore in Anchorage Infrastructure Investment Holding Ltd, an India investment holding incorporated specifically for investing in infrastructure and construction development.
The investment also includes transfer of share of Bangalore International Airport Limited to Anchorage, and an investment of Rs 950 crore in the company by 2726247 Ontariao Inc., a wholly-owned subsidiary of OAC which is the administrator of OMERS’, one of Canada’s largest defined benefit pension plans.
“The investment will be a major boost to the infrastructure and construction sector and also to the airport sector. The investment will considerably substantiate the government of India’s plan to develop a world class airport and transport related infrastructure through private partnership,” the government said in a statement.
Since Anchorage Infrastructure Investment Holding Ltd. is proposing to make downstream investment in some of the sector covered under the National Monetisation Pipeline (NMP), the government said the investment will also be a “significant boost” to the pipeline as it would 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.
“The investment will also lead to direct employment generation as the sector in which Anchorage Infrastructure Investment Holding Ltd. is proposing to make downstream investments are capital and employment intensive sector,” the government said, adding that the investment will also generate indirect employment during construction and ancillary activities.
The government on Monday unveiled a four-year NMP worth around Rs 6 lakh crore to unlock value in brownfield projects by engaging the private sector, transferring to them revenue rights and not ownership in the projects, and using the funds to create infrastructure.
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