T.N. to attract investments for infra\, housing funds: OPS

Tamil Nad

T.N. to attract investments for infra, housing funds: OPS

O. Panneerselvam

O. Panneerselvam   | Photo Credit: R_ASHOK

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First round of funding raised from local, foreign investors

Tamil Nadu Infrastructure Fund Management Company (TNIFMC), formed by the State government, plans to attract more international investment for the infrastructure fund and for the Tamil Nadu Shelter Fund (for affordable housing), Deputy Chief Minister O. Panneerselvam said on Saturday.

“We have established the Tamil Nadu Infrastructure Fund, which is the first category-I alternative investment fund, under Securities and Exchange Board of India regulations. It provides equity and structured finance infrastructure projects, which have a revenue model,” he said at a conference on innovative and alternative finance for business and infrastructure development.

Sharia finance

The conference was organised by United Economic Forum Chamber of Commerce and World Islamic Economic Forum Foundation.

The aim of the conference was to create awareness on Sharia compliant finance. “If any State is ready to receive and ground investments of such a large volume, it is Tamil Nadu. The State government has identified over 200 infrastructure projects, requiring an investment of about $250 billion,” he said.

The Deputy Chief Minister said that both the funds had institutional structures, which can receive investments, through sovereign wealth funds, and Sharia compliant funds.

The TNIFMC has worked with government agencies and private promoters to identify projects in the area of industrial water, industrial parks, green energy and allied projects.

First round of funding

The first round of funding has been raised from both local and international investors. The Tamil Nadu Infrastructure Fund has also declared its first close, with a total fund raising of $350 million, he said.

Shelter Fund, a social impact fund, would provide investors with profit and achieve social and environmental benefits.

Again, a first of its kind fund, Tamil Nadu Housing Board has provided seed investment of ₹150 crore, as catalytic first loss capital, Mr. Panneerselvam said.

Speaking at a conference, S. Krishnan, principal secretary, Housing and Urban Development, government of Tamil Nadu said the government would be building 0.5 million affordable houses in the next five years, which needs a investment of ₹60,000 crore.

State Industries Minister M.C. Sampath, Industries Secretary K. Gnanadesikan, Arif Buhary Rahman, chairman, UEF Chamber of Commerce, and Tun Musa Hitam, chairman, WIEF Foundation, spoke.