Report: Indian infrastructure may get another debt fund

A forum of 12 chief executive officers from India and the US have recommended the creation of a debt fund to the tune of $10bn for India’s infrastructure development. This is in addition to the Indian government's proposal for an $11bn fund.

The India-US CEOs forum in Washington has recommended the creation of a $10 billion debt fund for the development of India’s Infrastructure sector, according to a report in India Today.

The forum indicated this recommendation as a “doable” task that will be taken up during President Obama’s visit to India in November this year.

Co-chaired by Tata group chairman Ratan Tata, the forum of 12 chief executive officers (CEOs) from India and the US was set up last year during Indian Prime Minister Manmohan Singh’s visit to the US. 

Meanwhile, India’s finance minister Pranab Mukherjee, who led the high level business delegation to Washington, called for increased US investments in India’s infrastructure sector, according to media reports.

He said there is scope for investments worth $850 billion in the infrastructure sector in India, rising to $2.7 trillion in the next five years.

In May this year, the Indian government proposed a debt fund for $11 billion for its infrastructure sector. Of this total, the government plans to attract at least 40 percent from overseas investors, international pension funds, sovereign wealth funds and multilateral agencies, while the rest will come from domestic sources.