Indian infra awaits Rs. 60,000-cr investment

Players of various hues engaged in roads and real estate sectors, are all set to generate a whopping sum worth Rs 60,000-cr ($9 billion) this year via Reits and InvITs as the government is all set to roll out the much-awaited investment products. Sterlite Power Transmission Ltd. and IRB Infrastructure Developers Ltd. are racing to be the first to launch an infrastructure investment trust, said sources, claiming that after the regulator allowed domestic funds to put money into assets such as toll roads, airports and office blocks. India is seeking to replicate the success of similar trusts in the US, Singapore and Australia, where investors have flocked to assets that offer higher yields as those on global bonds. A new funding source may be crucial to the success of PM's goal of developing adequate electricity and water supplies as well as transport and digital connectivity. The trusts promise to be a key source of capital for real-estate and infrastructure developers as property sales have stagnated and banks have pulled back amid souring loans. There is a hunger for yield in India right now, said Mumbai-based co-chief investment officer at Birla Sun Life Asset Management, adding that investors will be looking to redeploy assets in the next 12 to 18 months as up to Rs. 1,700-cr of fixed-rate bank deposits mature, he said.