A trio of Indian and Canadian investors have entered into a joint venture to participate in up to $300 million of public-private partnerships (PPPs) for road and highway projects across India.
The agreement sees Canadian engineering conglomerate SNC Lavalin (10 percent) and the India Infrastructure Fund (39 percent), a portfolio overseen by IFDC Project Equity Company, team up with Piramal Roads (51 percent), a subsidiary of India’s Ashok Piramal Group (APG).
The three-party consortium plans to develop, construct and operate up to $300 million in PPP road and highway projects in the country. Piramal Roads is active and is currently involved with a road expansion project in the Indian state of Madhya Pradesh.
The joint investments will unfold over the next three-to-five years, after which time the consortium could list the venture, according to reports. India has committed to investing some $1 trillion in infrastructure through 2017 and will rely on private capital in part to achieve that goal.
Canada’s SNC- Lavalin has been active in India for decades, but intends to build on the strength of the local presence offered by the other partners.
“We are very excited to be a partner in this new venture in India,” noted SNC-Lavalin’s executive vice president and chief financial officer, Gilles Laramee, in a press release.” This is a natural extension of our activities and long-standing presence in the Indian market, which date back to the 1950s. It also aligns directly with our strategy to grow our concession business globally.”
Rajeev Piramal, vice chairman of the Ashok Piramal Group, stated: “The group has been focused on growth and has been looking to diversify from its existing business. The infrastructure sector is offering enormous opportunities and the roads and highways sector particularly suits our capabilities and appetite well.”