India offers huge foreign investment opportunity: Chidambaram

Washington, Oct 12 (IANS) Expressing confidence that India will see a long spell of high, sustained growth, Finance Minister P. Chidambaram has said the country offers huge opportunity for foreign investment with high returns.

"The focus of the Indian economy has been on the infrastructure investment, which has grown massively supported by increased private sector participation," he said at an event here Friday for the announcement of first closure of IDFC's second infrastructure fund.

Total investment requirements for power, roads, ports, civil aviation etc. during the Twelfth Plan period is projected at $1 trillion, nearly half of which is expected to come from the private sector, Chidambaram noted.

"This provides an ample opportunity for foreign investments to reap benefits from the high returns from India," he said referring to several massive infrastructure projects underway.

These included Delhi Mumbai Industrial Corridor that will link Delhi to Mumbai's ports covering an overall length of 1483 km passing through six States, entailing over $90 billion in investment,.

India, in recent years, has emerged as one of the leading Public Private Partnerships (PPP) markets in the world, he said with the government promoting PPP as an effective tool for bringing private-sector efficiencies for delivery of quality public services.

India currently has over 1000 PPP projects in the infrastructure sector with a total project cost (TPC) of about US $ 97 billion.

Pointing to steps taken to make India more attractive for Foreign Direct Investment, Chidambaram said FDI limits have been increased in several sectors, including retail, civil aviation and telecom, and restrictions in the banking sector have been eased.

FDI up to 100 percent is allowed, under the automatic route, in most of the sectors/activities. Investors are only required to notify and file documents at the regional office of the Reserve Bank of India, he said.

Through policy interventions and tax incentives, India has encouraged Infrastructure Development Funds, Chidambaram said calling it an i"nnovative attempt to address the issue of sourcing long term debt from foreign investors for infrastructure projects."

Potential investors in these will be overseas High Net Worth individuals and institutional investors like Sovereign Wealth Funds, Insurance and Pension Funds, he said.

He congratulated IDFC established by the Government of India in 1997 to lead private investment flows into Indian Infrastructure on successfully conveying the robustness of the Indian infrastructure investment opportunity to foreign institutional investors.

Noting that these investors have committed $644 million towards first close of its Second India Infrastructure Fund, Chidambaram expressed confidence that they will shortly achieve the target size of $1 billion.

(Arun Kumar can be contacted at arun.kumar@ians.in)

Matches

MORE TOP STORIES TODAY

AB, Parthiv seal Bangalore's second win

AB, Parthiv seal Bangalore's second win

Royal Challengers overcame a stutter to cruise to the small target they were set by Mumbai Indians. More »

Delhi look for first points against confident Kolkata

Delhi look for first points against confident Kolkata

Preview — The threat of Sunil Narine looms large again. More »

Glenn Maxwell carves his parallel universe

Glenn Maxwell carves his parallel universe

Glenn Maxwell seems to project an icy disdain when at the crease. Match situations rarely faze him and the bubble in which he plays excludes everyone … More »

No way back for Pietersen: ECB

No way back for Pietersen: ECB

Kevin Pietersen's hopes of reviving his international career appeared to end Saturday when ECB managing director Paul Downton said there was 'no way back'… More »

[REWIND] The world record that nearly wasn't

[REWIND] The world record that nearly wasn't

Twenty years ago this week, Brian Lara became Test cricket's highest scorer, but he almost didn't make it. More »

Moores gets second stint as England coach

Moores gets second stint as England coach

In a two-year spell from 2007 to 2009, the 51-year-old Moores led England in seven Test series. More »

BCCI is not anybody’s property — Dalmiya

BCCI is not anybody’s property — Dalmiya

Dalmiya feels that Srinivasan’s ‘power hungry’ attitude isn’t helping matters. More »

Tough for bowlers: Saeed Ajmal

Tough for bowlers: Saeed Ajmal

The 36-year-old believes the T20 format and rule changes in 50-over matches have made a real difference. More »

Rajasthan edge low-scoring thriller

Rajasthan edge low-scoring thriller

The bowlers restricted Hyderabad to 133 for 6 before Rahane and Binny took Rajasthan over the line. More »

Maxwell blitz takes Punjab home

Maxwell blitz takes Punjab home

The Kings XI batsman blasted a 43-ball 95 to help his team pull off a massive chase against Chennai Super Kings. More »

KP ridicules idea of day-night Tests

KP ridicules idea of day-night Tests

Kevin Pietersen has ridiculed the idea of day-night Test cricket, saying the game would be so different to proper Test cricket that we will need a whole… More »

BCCI members want independent probe

BCCI members want independent probe

The board members are realising after the Supreme Court's observations that something has to be done — IS Bindra More »

'BCCI lacks leaders to take on Srini'

'BCCI lacks leaders to take on Srini'

Two former BCCI presidents, Shashank Manohar and Jagmohan Dalmiya, have reacted strongly to the news of the BCCI calling an emergent meeting on Sunday… More »

Bangalore vs Mumbai: A battle of the big-hitters

Bangalore vs Mumbai: A battle of the big-hitters

Preview — Given the firepower in both line-ups, Dubai crowd may see another high-scorer More »

Yuvraj tees off to Sharjah's delight

Yuvraj tees off to Sharjah's delight

Yuvraj Singh was hardly convincing to begin with against Delhi, but a big dose of crowd support and a helping of poor bowling meant he had the opportunity… More »

Stressed Trott stands down again

Stressed Trott stands down again

The England and Wales Cricket Board (ECB) on Friday confirmed that batsman Jonathan Trott is to take another break from all cricket with immediate eff… More »

PCB starts another coach hunt

PCB starts another coach hunt

The PCB has decided to not extend the contracts of head coach Moin Khan, fielding coach Shoaib Mohammad and batting consultant Zaheer Abbas, and has invited… More »

Fiery star Stokes bids to curb his temper

Fiery star Stokes bids to curb his temper

England all-rounder Ben Stokes admits he must keep his anger under control if he is to end his international exile. More »

Bangalore's arsenal blazes to victory

Bangalore's arsenal blazes to victory

Yuvraj Singh was back to his best in his first match for Royal Challengers Bangalore. More »

Pakistan cricketers face probe

Pakistan cricketers face probe

Pakistani cricket authorities have launched an investigation after a number of current international stars played in exhibition matches in the United States… More »

BCCI to meet before next court hearing

BCCI to meet before next court hearing

The BCCI will hold an emergent working committee meeting on April 20 to discuss the future course of action with regard to the Supreme Court hearing concerning… More »

Gavaskar wants a clean IPL

Gavaskar wants a clean IPL

"Integrity is non-negotiable..." says the BCCI's interim chief ahead of Season 7 of the tainted league. More »

Time for Chennai to enter familiar cocoon

Time for Chennai to enter familiar cocoon

Chennai have an emphatic 8-3 lead in the head-to-head with Punjab, with one game tied More »

Kallis, Narine star in KKR win

Kallis, Narine star in KKR win

An all-round display saw Knight Riders thump Mumbai Indians by 41 runs in the IPL-7 opener. More »