Sovereign wealth funds analyze the infra sector

NEW DELHI: Several top of Saudi Arabia the UAE Singapore and other countries have shown great interest in investing in the lucrative infrastructure sector of the country.

FM in its Budget speech had offered incentives for sovereign funds from foreign governments in the priority sectors. The government said it will grant 100% of its interest income, dividends and capital gains on the investment made in infrastructure and other 36 sectors notified before March 2024 and with a minimum three-year blocking period.

“Yes, because they have already expressed interest. They want to invest in India’s infrastructure. They are not just looking for greenfield projects, they are also looking at brownfield projects. That is one of the reasons that I have been very tempted to extend the incentives. The UAE for instance, Saudi Arabia , Japan do not have a sovereign wealth fund but they have an agency. Two ministers from Singapore had come and spoken to us,” a senior finance ministry official had told TOI recently.

Sovereign funds are created from state assets and are state-owned investment funds, which invest in long-term projects to obtain better returns.

The Authority has developed massive plans for investment in sectors such as airports, renewable energy. Japan is also exploring channeling some investments to India.