IDFC readies to set up infrastructure fund

The Infrastructure Development Finance Company (IDFC) has decided to float an asset management company and a trust to operationalise the Rs ...

The Infrastructure Development Finance Company (IDFC) has decided to float an asset management company and a trust to operationalise the Rs 1,000 crore Infrastructure Equity Fund proposed in the recent budget. The company is likely to apply for the Sebi approval soon.

“We have chosen the present mutual fund concept for the equity fund announced in the budget-2002 out of four such models we have studied. However, this would not be made available to retail investors and, for that, the regulation may require certain amendments. We are already in talks with the Sebi on this,” IDFC MD and CEO Nasser Munjee said.

The fund would pool the investments from institutions, companies or high networth individuals for using them for infrastructure projects in general. “We would like to confine the project only to high networth individuals or companies, who can understand or assess returns from projects on their own. We do not want to involve ourselves in daily announcement of NAV and other things,”Munjee said.

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The responsibility of IDFC is to structure, develop and manage the fund in a way it can attract more private investments. “However, this is only the first initiative to serve the generic purpose. But funds intended to cater to the financing needs of specific sectors would follow,” Munjee added.

IDFC has also been asked to act as the single facilitator for all infrastructure projects with an outlay of over Rs 200 crore. This was also announced by the Union finance minister Yashwant Sinha in the budget.

rime Minister Narendra Modi addresses the gathering during the inauguration of the PM MITRA Park and foundation stone laying ceremony of development works, in Dhar, Madhya Pradesh. (@NarendraModi via PTI Photo)

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