Union Cabinet Approves Rs 15,000 Crore FDI In Aviation And Construction Sector
In a major boost to the infrastructure and construction sector, Prime Minister Narendra Modi led Cabinet Committee on Economic Affairs (CCEA) has approved the foreign direct investment (FDI) proposal for an investment of Rs 15,000 crore in Anchorage Infrastructure Investment Holding Ltd.
Anchorage is an India investment holding incorporated specifically for the purpose of investment in infrastructure and the construction-development sectors which may include transport and logistics etc. along with downstream investment in the airport sector and aviation related businesses and services.
The investment also includes transfer of share of Bangalore International airport Limited to Anchorage, and investment of Rs 950 crore in Anchorage Infrastructure Investment Holding Ltd by Ontariao Inc, a wholly-owned subsidiary of OAC which is the administrator of OMERS’, one of Canada’s largest defined benefit pension plans, an official release said on Wednesday (25 August).
According to the release, the investment will be a major boost to the infrastructure and construction sector and also to the Airport sector, and will considerably substantiate the government of India’s plan to develop world class airport and transport related infrastructure though private partnership.
The investment will also be a significant boost to the recently announced National Monetisation Pipeline (NMP), as it will 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.
Anchorage Infrastructure Investment Holding Limited is proposing to make downstream investment in some of the sector covered under the NMP, the release said.
The investment will also lead to direct employment generation as the sector in which Anchorage Infrastructure Investment Holding Limited is proposing to make downstream investments are capital and employment intensive sector. The investment will also generate indirect employment during construction and ancillary activities, the release added.