Cabinet approves FDI proposal of Rs 15000 cr in Anchorage Infrastructure
Investment proposal will be a major boost to the infrastructure and construction sector and also to the aviation sector
The government on Wednesday cleared FDI proposal of Rs 15000 crore in Anchorage Infrastructure Investment Holding Ltd., an India investment holding incorporated specifically for the purpose of investment in infrastructure and the construction-development sectors.
This clearance was given by Prime Minister Narendra Modi while chairing a meeting of the Cabinet committee on Economic Affairs.
The FDI will be used for investments in transport and logistics sectors along with downstream investment in the airport sector and aviation related businesses and services.
The investment also includes transfer of shares of Bangalore International Airport Limited to Anchorage, and investment of Rs. 950 crore in Anchorage Infrastructure by 2726247 Ontario Inc., a wholly-owned subsidiary of OAC which is the administrator of OMERS', one of Canada's largest defined benefit pension plans.
According to the Cabinet Committee on Economic Affairs, the investment will considerably substantiate the government of India's plan to develop world class Airport and transport related infrastructure through 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, it stated.
Anchorage Infrastructure is proposing to make downstream investment in some of the sectors covered under the NMP.
The investment will also lead to direct employment generation as the sector in which Anchorage Infrastructure is proposing to make downstream investments are capital and employment intensive sectors, the statement noted.
The investment will also generate indirect employment during construction and ancillary activities, it further said.