FM: Looking to set up feeder fund for IDFs

India is exploring the possibility of setting up a London-listed ‘feeder fund’ for Infrastructure Debt Funds (IDFs),and is looking to work with the UK on increasing institutional investments in the sector,finance minister P Chidambaram said.

Written by Press Trust Of India | London | Published: May 18, 2013 4:10 am

India is exploring the possibility of setting up a London-listed ‘feeder fund’ for Infrastructure Debt Funds (IDFs),and is looking to work with the UK on increasing institutional investments in the sector,finance minister P Chidambaram said.

“Both countries agreed to pursue joint work on the common aim of exploring ways to encourage increased institutional investment in infrastructure,” Chidambaram said in a joint statement issued with his British counterpart,George Osborne.

“This will include exploring the possibility of establishment of a London listed ‘feeder fund’ for Indian Infrastructure Debt Funds (IDFs),” he said after the 6th Annual India-UK Economic and Financial Dialogue that ended here on Thursday.

A feeder fund makes most of its investments through a ‘master fund’.

It can obtain better trading and operating costs through the master-feeder structure because of economies of scale. India has set a target of investing $1 trillion by 2017 to bolster its infrastructure.

The statement said that India will actively consider the UK’s offer of partnership over the Bangalore-Mumbai Economic Corridor,and co-financing a feasibility study.

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