ICICI Bank sees role in funding India's infra needs

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Mumbai, September 17:: Indian infrastructure space will be the centre of investors' focus over the next few years, with ICICI Bank anticipating a role in investment of 20-23 billion dollars in this space by 2010-end.

"ICICI Bank believes that it would contribute 20-23 billion dollars in the 500 billion dollar capital expenditure requirement of the infrastructure sector in the next three years," the bank's Deputy Managing Director Chanda Kochhar said.

According to the bank's internal estimates, the sector would need about 500 billion dollars, with infrastructure projects accounting for nearly half this amount, through 2010.

The country's largest private lender had recently announced a two billion dollar infrastructure fund where it is pooling in capital from foreign investors to be invested in various infrastructure projects in India. The bank is already believed to have received commitments for one-fourth of the fund size and is likely to contribute about 15 per cent (300 million dollars) of its own funds.

ICICI Bank is looking to follow this fund with a larger one worth five billion dollars in 2-3 years.

"The two billion dollar fund is just the beginning. It is only a small part of our plans to invest in infrastructure projects," she added.

This fund would be involved mostly in equity investment and ICICI Bank's share would be about 15 per cent," she said.