CCEA approves Rs 15,000 crore FDI in Fairfax India's investment arm

Investment also includes transfer of shares of Bangalore International Airport Limited to Anchorage, and Rs 950 crore in the investment arm of Prem Watsa-owned Fairfax India by Ontario Inc

The Cabinet Committee of Economic Affairs (CCEA) has approved foreign direct investment (FDI) of up to Rs 15,000 crore in Fairfax India’s investment vehicle Anchorage Infrastructure Investment Holding.

The investment also includes transfer of shares of Bangalore International Airport Limited (BIAL) to Anchorage, and investment of Rs 950 crore in the investment arm of Prem Watsa-owned Fairfax India by Ontario Inc. Ontario Inc is a wholly-owned subsidiary of OAC, which is the administrator of one of the Canada's largest defined pension plans OMER.

Anchorage Infrastructure Investment Holding is an India-specific entity floated for the purpose of investment in infrastructure, transport, logistics, airport and aviation related businesses.

“The investment will be a major boost to the infrastructure and construction sector and also to the Airport sector. The investment will considerably substantiate Government of India's plan to develop world class Airport and transport related infrastructure through private partnership,” said a statement by Ministry of Finance.

This would also give a push to the government’s National Monetisation Pipeline that aims to lease out state-owned infrastructure assets like roads, railways, airports, sports stadiums, power transmission lines and gas pipelines to private operators.

Anchorage is also proposing to make downstream investment in some of the sectors covered under the NMP, the statement said.

Earlier this year, Fairfax Financial Holdings Chairman Prem Watsa had said preparatory work is on list Anchorage on the Indian stock exchanges. He had announced that Fairfax India will transfer 43.6 per cent out of the 54 per cent that it owns in BIAL to Anchorage, and sell 11.5 per cent of Anchorage for cash consideration of $130 million.

The investment will also lead to direct employment generation as Anchorage is proposing to make investments in capital and employment intensive sectors, the finance ministry said.