The National Monetization Pipeline (NMP) announced by the government on Monday seems to have become operational. It has indicated this by today approving a proposal by a large Canadian pension fund to make a big investment in the infra sector.
In the meeting of the Cabinet Committee today, Foreign Direct Investment (FDI) of Rs 15,000 crore has been approved by the subsidiary of a large pension fund of Canada. Canadian company Anchorage Infrastructure Investment Holding is making this investment in the infra sector. Apart from infra and construction, this will also give a boost to the aviation sector.
Investment will come from airport to transport and logistics
The Canadian company’s FDI has been approved exclusively as an investment in the infra and construction development sectors. Under this, downstream investment in the airport sector, business and services related to the aviation sector, besides investment in transport and logistics will be done.
The shares of Bangalore International Airport will be transferred to a subsidiary of Canada’s Pension Fund for an investment of Rs 15,000 crore. According to an official government statement, 2726247 Ontario Inc. will invest Rs 950 crore in Anchorage Infrastructure Investment Holding.
Promotion of National Monetization Pipeline with Pension Fund investment
2726247 Ontario Inc. is a wholly owned subsidiary of OMERS Administration Corporation (OAC). OAC manages the Ontario Municipal Employees Retirement System, a large defined benefit pension plan in Canada.
The government has also said that the investment from Canada’s Pension Fund will boost the recently launched National Monetization Pipeline (NMP). The government will be able to raise money by leasing them to the private sector for better use of infra assets like roads, railways, airports, sports stadiums, power transmission and gas pipelines.
There is also a proposal to make downstream investment in some sectors under NMP.
The government said Anchorage Infra is also proposing to make downstream investments in certain sectors under the National Monetization Pipeline (NMP). The government says that the investment of the Canadian company will create employment opportunities directly and indirectly. Plans to make airports world class will be supported in private partnership.
The government says that the kind of investment Anchorage is talking about, it requires a lot of money and people. This will encourage indirect employment by increasing construction and related activities.
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