Russia’s sovereign wealth fund, the Russian Direct Investment Fund (RDIF), has signed two Memoranda of Understanding (MoU) with India’s global integrated power company Tata Power and leading infrastructure finance group the Infrastructure Development Finance Company (IDFC). The agreement includes a $500 million commitment from both parties.
The agreements in principle followed Russian President Vladimir Putin’s state visit to India which included a Confederation of Indian Industry conference on Wednesday bringing together 100 participants including Russian and Indian state officials as well as businessmen from the State Bank of India, Infrastructure Leasing & Financial Services (IL&FS), Sun Group, and a number of leading pharmaceutical companies.
“RDIF has identified the energy sector as one of its key priorities for increasing Russia's economic efficiency and sustainability. Our collaboration with Tata Power will not only introduce a new, established player into the Russian market, but will provide opportunities to leverage Tata Power’s high-class expertise in renewable energy production and implementation of large-scale international projects,” said Kirill Dmitriev, RDIF’s chief executive officer.
“RDIF will benefit from IDFC’s industry insights and execution expertise in cooperating with a network of portfolio companies in the infrastructure sector. Our partner’s experience in such areas as large scale concession projects, specifically in transport infrastructure, will be invaluable in growing the Russian infrastructure market. We are certain that this partnership will contribute to the strengthening of Russia and India’s relationship by promoting cross-border investments and economic cooperation, adding to the growth and prosperity of the two nations,” added Dmitriev.
“Both countries are progressing at a fast pace and infrastructure remains one of the key focus areas. This partnership will enable us to access vital projects and deliver on long term goals. We look forward to leveraging our knowledge and skills in building the infrastructure of Russia and India,” echoed Dr. Rajiv Lall, IDFC’s executive chairman.
Earlier this month, RDIF signed partnerships with Russian state company Avtodor to develop joint projects in transport infrastructure and with Turkey’s Renaissance Holding to jointly develop public-private partnerships across Russia’s regions.