NIIF aims to strengthen India's road network by collaborating with ROADIS

The National Investment and Infrastructure Fund (NIIF) Wednesday said it has tied up with global transport infra operator ROADIS and invest USD 2 billion for road building in the country. Over USD 2 billion in equity will be invested by the two partners through a specially created platform which will target toll operate transfer models, acquisitions of existing road concessions and investment opportunities in the road sector, an official statement said.

"The road network is a key enabler for the Indian economy to grow and sustain its position as the fastest growing major economy in the world, and this provides significant upside potential for investments while creating value for users," NIIF's managing director and chief executive Sujoy Bose said.

ROADIS has the expertise and the "ability and interest" to invest substantial capital in India, he added. The foreign partner is already the largest European highway concession manager in India with 710 km of highways under ownership and management, the statement said. It was not immediately clear on how much of equity will be invested by each of the two partners. It can also be noted that the actual investment on the ground can be far higher, as there is always leverage or gearing on the equity investment. "This agreement, which aligns with our growth strategy, strengthens our long-term commitment to India," ROADIS' chief executive Jose Antonio Labarra said.