Indian financial services firm Infrastructure Development Finance Company said on Friday it, along with Malaysia’s Khazanah, will form an infrastructure development joint venture with focus on road projects in India.
IDFC will hold 19.9 percent and the Malaysian strategic state investment firm would hold the remainder in the proposed JV. Khazanah and IDFC also propose to invest in convertible instruments issued by the JV.
The JV plans to invest in Jetpur Somnath Tollways Limited by acquiring 74 percent stake in two stages held by IDFC Projects, it said in a statement to the stock exchanges.
India, Asia’s third-largest economy, will need to spend more than $1 trillion on infrastructure from 2010 to 2019, with roads requiring $427 billion, according to Goldman Sachs.