Citigroup Inc., partnering with Blackstone Group LP in an infrastructure fund in India, expects to raise $1 billion (Rs4,050 crore) to build roads, ports and utilities by next month, after a delay in setting up the fund.
“We are in the process of raising it,” said Sanjay Nayar, chief executive officer for the bank’s Indian unit.
Citigroup chief executive officer Charles Prince had said the New-York-based bank, Blackstone and Infrastructure Development Finance Co. will raise $5 billion to invest in India by last May. India plans to spend $475 billion by 2012 to ease bottlenecks constraining growth, attracting investors including 3i Group Plc. The partners in February agreed to invest $250 million each for projects in India. Infrastructure Development Finance in July raised $519 million selling shares to fund projects.
Prime Minister Manmohan Singh in October doubled his infrastructure budget, saying upgrading public facilities is crucial to meeting a target of raising growth to 10% from an average of about 8%.
India loses two percentage points of annual growth because of inadequate power and transportation networks, according to the finance ministry.