India Invites Foreign Pensions to Invest in Railroad System

India

India’s Union Railway Minister said last week that investments in railroads were needed to avoid a “deterioration of services”.

On Monday, Minister Suresh Prabhu said the foreign pension funds would be an ideal investment partner.

From The Hindu Business Line:

The Union Railway Minister Suresh Prabhu on Monday called for tapping overseas pension funds to raise financial resources for the Railways.

Apart from the domestic pension fund, foreign pension funds could be tapped to get cheaper loans for infrastructure and network expansion, Prabhu said.

“We will invite foreign pension funds to invest in the Indian Railways as loans. We have to bring in investments from both within and outside the country,” he said at the 15th National seminar on ‘PPP and FDI in Indian Railways’ here.

Countries such as Australia and Canada have utilised the pension fund route to develop their economies.

The Minister said private investors were willing to invest in railway projects, expecting “some returns, not large returns”. “Investors must benefit reasonably (while investing in railway projects), but should not expect a windfall,” he added.

The Canada Pension Plan Investment Board has already shown interest in Indian infrastructure.

 

Photo by sandeepachetan.com travel photography via Flickr CC License

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