India eyes funds from UK, Saudi Arabia and Japan for infra push

India is looking to tap funds from the UK, Saudi Arabia and Japan to finance the mega infrastructure ambition, with new structures to route the funds being discussed.
Unlike the past when only broad commitments were taken, this time, the finance ministry and Niti Aayog are offering a list of projects, such as a ring road around a tier II city or a large highway, to investors from other countries.
Besides, the projects are sought to be designed in a way that the concerns of the investors are addressed, and they are also being offered equity in some of the special purpose vehicles to execute the projects.
While an “infrastructure bridge” with the UK is at an advanced stage, talks with Saudi Arabia are seeking to ensure that an earlier commitment of $100 billion made by the oil-rich kingdom actually begins to flow as there has not even been a trickle from the Gulf nation. The response from Saudi authorities has not been so positive so far.
Similarly, in the case of Japan, the pitch is to corner investment from the large pension funds in the Asian giant instead of merely depending on JBIC, which finances projects with several conditions.
The funding sources are in addition to traditional long-duration funds that govt has been eyeing from Canada, Australia and other parts of the world.