India's UTI launches infrastructure fund

UTI Asset Management Company has partnered with HSH Nordbank and Kuwait's Noor Financial Investment Company to launch a $500 million infrastructure fund.

The fund, India Infrastructure Development Fund IIDF, will make private equity investments in infrastructure projects in India, including those which are being offered to private developers under the public-private partnership PPP model. India has been promoting the PPP model, a collaborative model between private developers and the government, to address its infrastructure gap, specifically in the areas of roads, ports, airports and power generation.

IIDF has already made its first investment in a city gas distribution project, Sabarmati Gas. The company distributes gas in the city of Gandhinagar and in the districts...