Highways: Top Canadian pension funds invest nearly Rs 36 billion in Indian Highway Trust
Two large Canadian pension funds this week invested a total of 595 million Canadian dollars ($438.3 million) (about Rs 36.45 billion) in India’s National Highway Infrastructure Trust (NHIT). With this he placed his bet on India’s rapidly growing infrastructure sector going into the elections.
In this trust, supported by the Indian government, the Canada Pension Plan Investment Board and the Ontario Teachers’ Pension Plan Board invested 297 million Canadian dollars and 298 million Canadian dollars, respectively, for the development of the National Highway. As the funds said in separate statements on Tuesday and Wednesday.
This investment has taken place at a time when general elections are starting in India next month. There is a continuous increase in government expenditure before the elections. The benefits of which are being availed by construction companies in sectors like cement, wiring and realty.
The share of road-related projects rose from 40 per cent to 42 per cent of total tenders in the quarter ending December 2023, accounting for the largest share of orders, data from Bharat Rating & Research showed.
Ontario Teachers said the proceeds from the capital raising will be used to acquire seven road concessions in central, eastern and southern India. This will expand NHIT’s portfolio of operations to 15 toll roads.
