India, Russia sign MoU for funding of hydro-generation projects
In a statement, Russian Direct Investment Fund (RDIF) said the BRICS nations have supported the initiative to set up a joint mechanism for equity investments in infrastructure projects among member countries.
RDIF, India's IDFC group, Brazil's BTG Pactual, China's Silk Road Fund, and the Development Bank of Southern Africasigned a framework agreement at the BRICS summit in Ufa, it said.
Under the agreement, the parties will work together to identify and finance infrastructure projects that will improve trade, economic and investment cooperation among BRICS countries.
This initiative was also supported by the BRICS Business Council.
"Together, we will create an effective new tool for financing infrastructure projects in emerging economies. Our combined experience and expertise will ensure that even projects on a major scale are viable for investment," RDIF CEO Dmitriev said.
RDIF was established in 2011 to make equity co-investments.
"We will attract private investment into these projects, and in turn, substantially strengthen investment cooperation between our countries. We also plan to coordinate our efforts under this mechanism with BRICS New Development Bank," Dmitriev said.
India is hoping to get more funds for infrastructure development from BRICS bank, which will start with an initial paid-up capital of USD 50 billion, with each BRICS country contributing USD 10 billion. Its authorised capital is USD 100 billion.
The first meeting of the Governors of the New Development Bank took place in Moscow yesterday. The leaders of BRICS nations are meeting in Ufa for a two-day summit.
The BRICS nations (Brazil, Russia, India, China, South Africa) account for nearly USD 16 trillion in GDP and 40 per cent of the world's population.