The Aryavarth Express
Agency (New Delhi): This week, the Canada Pension Plan Investment Board and the Ontario Teachers’ Pension Plan Board announced significant investments totaling C$595 million ($438.3 million) in India’s National Highways Infra Trust (NHIT), underscoring their growing interest in the South Asian nation’s rapidly expanding infrastructure sector. With India poised for general elections next month, these investments reflect confidence in the country’s infrastructure development momentum, which benefits a broad spectrum of construction-related industries.
The Canadian pension giants, investing C$297 million and C$298 million respectively, are focusing on NHIT—a trust supported by the Indian government dedicated to national highway projects. This capital infusion is expected to enhance NHIT’s capabilities, with plans to use the funds to acquire seven road concessions in various regions, including central, eastern, and southern India. This expansion will increase NHIT’s operational toll roads to 15, marking a significant growth in its infrastructure portfolio.
The decision by these pension funds to increase their investments in India comes at a time when the country’s government spending is on the rise, particularly in the infrastructure sector, as it gears up for the upcoming elections. According to data from India Ratings & Research, the share of road-related projects in overall tenders increased to 42% in the quarter ending December 2023, up from 40% the previous year, highlighting the sector’s dominance in the construction industry.
This move by Canadian pension funds signals a strong vote of confidence in India’s infrastructure sector’s potential, positioning NHIT for further growth and development in the national highway network.