The infrastructure equity fund has been launched with an initial corpus of Rs 300 crore.
The Life Insurance Corporation, the State Bank of India and the Infrastructure Development Finance Company (IDFC) entered into an agreement to contribute Rs 100 crore each last week and the drawdown will begin at the time of investment.
The plan to create such a fund with a total corpus of Rs 1,000 crore to catalyse investments in the core sector was announced by the then finance minister Yashwant Sinha in his Budget proposals for 2002-03.