Russian state fund RDIF to co-invest $1 billion in India
The RDIF and India’s NIIF will each invest up to $500 million in the joint fund, replicating partnerships the Russian entity has with countries like China
New Delhi: Giving a boost to the infrastructure sector in the country, Russia in partnership with India will jointly invest $1 billion in diverse infrastructural areas like energy, petrochemicals and transport among others.
For this initiative, Moscow’s Russian Direct Investment Fund (RDIF) and India’s National Infrastructure Investment Fund (NIIF) would pump in $500 million each to create a Russian Indian Investment Fund.
“The joint fund will support attractive investment opportunities and growth of Russian business activity in India. The money will be invested in infrastructure projects with Russian component. We will look at energy, petrochemicals, transport infrastructure and different projects where our companies can also have a foot in India” Kirill Dmitriev, chief executive officer, RDIF told PTI.
It is a first of its kind partnership for the newly-formed NIIF and the agreement to start the fund will be signed in the presence of Prime Minister Narendra Modi and his Russian counterpart President Vladimir Putin during the two day BRICS summit beginning today at Goa.
According to Dmitriev, there’s a potential of a higher investment of upto $8 billion through an arrangement like this as various partners of the RDIF like some Russian banks and companies can also pump more money into the fund.