Cdc Set To Sharpen Its Infrastructure Sector Exposure

This emerged from an informal discussion with a senior official of the organisation at the ICRA international conference on financing infrastructure projects who requested anonymity.

The official said CDC was open to investments in all areas of infrastructure like power, water-supply systems, highways and bridges, but in the next few years the thrust would be in cement and steel.

The institution will fund projects in India and hopes to bring in $230 million over the next year. CDC hopes to increase their cash flow to India by $60 million over the next four years.

The commonwealth body made a total investment of pounds276 million in 1995 and till 1995 has made a total investment of pounds1,487 million in 50 countries and 369 businesses which includes 31 per cent investment made in sub-Saharan Africa and 28 per cent in South Asia.

 

The organisation's prime objective is to contribute towards the development of economically backward countries where it supports the operations of financially viable and sound business enterprises.

The CDC, as a matter of policy, invests only in businesses which would contribute positively to the national development of these countries. The Corportion involves itself with these businesses on a commercial basis, applies market discipline and also helps through participation.

Though public sector enterprises feature in its portfolio, the organisation concentrates mostly on helping the private sector.The funding it provides, on an average, produces a lower risk adjusted rate of return than available from private sources of finance.

The CDC also stresses on the need for its investments to meet broader development criteria whether by promoting environmental and safety standards or by mobilising other sources of funding, by importing commercial and financial skills which can be passed on to local management. The Corportion currently has two offices in the country at New Delhi and Bangalore, but has no plans to set up any more offices in the near future.