Malaysia calls for infrastructure partnership with India

The Malaysian Government said that about $ 30 billion (around Rs 1.35 lakh crore) could be sourced by creating an infrastructure investment-based fund, which could be listed on the Malaysian stock exchange by both Indian and Malaysian companies and institutions.

Speaking at the South India Infrastructure Investment Summit 2011, S Samy Vellu, Malaysia’s Special Envoy to India and South Asia on infrastructure said: “Both, India and Malaysia, must work together to creative financial packages along with strategic alliance to realise the actual potential of this vast infrastructure opportunity.’’

He unfolded a six-point forward looking strategy to finance India’s infrastructure. He also said, India should recognise and reward the role of the private sector which should participate actively in the ‘Stakeholders inclusive investment model’.

Further Vellu added, the infrastructure banks should re-assess their roles both in India and Malaysia as to how to tap and gain from the massive infrastructure magnitude in India.

S K Goel, chairman, South India Infrastructure Investment Summit 2011 and Chairman and Managing Director, India Infrastructure Finance Co Ltd, added, 50 per cent of the estimated investment requirement of $1 trillion for the infrastructure development in the country has to come from the private sector.

“Innovative funding mechanisms should be deviced to bridge the demand supply gap in the financial sector,” he said.

Vellu added, the infrastructure banks should re-assess their roles both in India and Malaysia as to how to tap and gain from the massive infrastructure magnitude in India. They must position themselves as cost efficient, reliable and dependent financial partners for infrastructure providers.