Shifting its focus from the US and other European nations, Canada has assured India to invest $ three billion in highways projects in the next five years, Road Transport and Highways Minister Kamal Nath said.
"Earlier Canada was parking funds in western countries mostly the US, I sensitised them...They showed a lot of interest. Over a period of five years, I think we should have close to $ three billion," Nath told PTI.
He said he had talked to a large number of funds there, including pension and insurance funds and they have evinced interest in the India's infrastructure sector.
"I am optimistic that we would see some interest from pension funds and insurance funds (from Canada) because those are the kinds of funds, which for the long term infrastructure funds are the most desirable," Nath said.
The move comes in the wake of India raising cap on foreign institutional investors (FIIs) investment by $ 5 billion in government and corporate bonds each. Besides, the government allowed FIIs to invest additional $ 5 billion in bonds issued by companies engaged in infrastructure sector.
The country needs about $ 70 billion for building roads in the next four years and Nath had earlier said that $ 40 billion requirement would be met from the private sector, of which $ 10 billion is likely to come from foreign funds.
The government plans to build 35,000 km of highways by March 2014.
