Infrastructure Development Finance Company (IDFC) today said it plans to set up a dedicated infrastructure development company with its focus on road sector in association with the Malaysian government fund Khazanah.
IDFC would hold 19.9% and Khazanah would hold 80.1% of the equity share capital of the proposed Joint Venture, the company said in a statement.
Khazanah, sovereign fund promoted by the Malaysian government, and IDFC also propose to invest in convertible instruments issued by the JV.
Khazanah is the probably the first foreign sovereign fund to investment in the infrastructure development in India.
As its first initiative the JV will invest in Jetpur Somnath Tollways (JSTL) subject to receipt of necessary regulatory approvals and permissions, including from the National Highway Authority of India.
JSTL is a company which undertakes development of a project involving four-laning the Jetpur-Somnath section of the National Highway-8D in the State of Gujarat.
IDFC Projects (IDFCPL), a group company of IDFC, currently holds 74 of the share capital of JSTL.
It is proposed that the JV will initially acquire 48% of the share capital of JSTL from IDFCPL and will ultimately acquire the entire shareholding of IDFCPL in JSTL and hold 74% of the share capital of JSTL.
