GE to set up $300-500mn India infra fund

Bullish on government's commitment in infrastructure development, global gaint General Electric (GE) on Thursday said it plans to set up a $300-500 million infrastructure fund.

"Sooner than later we will establish an infrastructure fund with $300-500 million, may be we can double that," Jeffrey R Immelt, chairman & CEO, GE said at the India Infrastructure Forum in New Delhi.

The government's 11th five year plan envisages investment in infrastructure to the tune of $320 billion.

GE's statement came after Citigroup, Blackstone, IDFC and IIFCL had announced plans to set up $5 billion fund for infrastructure development.

There were also reports that the company is looking at financing real estate and is planning a $2 billion fund to be invested across all types of real estate - residential, retail, townships and special economic zones (SEZs).

He also said that the company finds good potential in finacial services industry as well.

The company is trying to export high tech products from US to India like turbine and locomotive which should meet Indian cost structure. When asked about meeting revenue target of $8 billion by 2010, Immelt said: "We very much believe that this ($8 billion target for India) is viable." GE had earlier set a target of $5 billion by 2010 which was scaled up last year.