DPW partners fund to invest in India

Lloyd Doyle
January 23, 2018

The newly formed National Investment and Infrastructure Fund (NIIF) on Monday announced its first investment, partnering with UAE-based marine logistics major DP World to create an investment platform that will pour up to $3 billion into ports, terminals, and logistics projects in India.

The money will target acquiring assets and developing projects in sea and river ports, freight corridors, special economic zones, inland container terminals, and logistics infrastructure such as cold storage, the two organisations said.

"DP World has been a part of India's growth story for almost two decades and we are delighted to continue our success by joining forces with a strong strategic partner, the NIIF", Sulayem said.

The company shipped some 65 million TEU (20-foot equivalent containers) globally in 2016 but has the capacity to handle 85 million.

Abu Dhabi Investment Authority in October announced a $1 billion investment in India's National Investment and Infrastructure Fund, which itself operates like a sovereign wealth fund.

The NIIF is being operationalised by establishing three Alternative Investment Funds (AIFs) under the SEBI Regulations. It has a targeted corpus of Rs 40,000 crore to be raised over the years - 49 per cent of which will be funded by the government at any given point of time. "The NIIF has the mandate to solicit equity participation from strategic anchor partners like overseas sovereign/quasi-sovereign /multilateral /bilateral investors", the ministry said.

Commenting on the development Sujoy Bose, CEO, NIIF said, "Efficient logistics and cargo movement are critical components for the continued growth and development of the Indian economy, particularly [in] manufacturing".

Meanwhile, Sultan Ahmed Bin Sulayem, group chairman and CEO of DP World, said the group's expertise in building logistics infrastructure together with the NIIF's local knowledge and government partnership is the right combination to take advantage of the growth opportunities in India.

The partnership was set up under the Memorandum of Understanding (MoU) signed in May 2017.

The government had created the NIIF to catalyse capital from global and domestic investors into energy, transportation, housing, water, waste management and other infrastructure and allied sectors. NIIF was set up in December 2015 to catalyse funding into the country's core sector. The country is in dire need of foreign investment and is encouraging players such as DP World to help it overhaul its ageing infrastructure which is a hurdle to growth.

Other reports by Iphone Fresh

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