Morgan Stanley Infrastructure (MSI) and Spanish Group Isolux Corsan have decided to jointly invest $200 million each in the Indian infrastructure sector, preferably highways.

The $400 million investment will be routed through a holding company Isolux Corsan Concesiones.

Part of the investment will be towards equity to highway development projects, being implemented by Isolux Corsan in India. Remaining investment will be routed for new and brownfield projects.

“Less than half of the $400 million will be invested as equity for three highway projects,” Mr Gautam Bhandari, Head-Morgan Stanley Infrastructure, Asia, told Business Line.

Isolux Corsan, in partnership with Soma Enterprises, is implementing three national highway projects with a length of over 400 km.

The projects, estimated to cost over $1.6 billion, have already received debt financing from financial institutions and equity investment from Isolux Corsán.

“We are also looking at investment options in brownfield as well as new highway projects. We are open to port projects as well,” Mr Mario Pastinante, Managing Director, Isolux Corsan India, told Business Line.

Morgan Stanley Infrastructure is a $4 billion global infrastructure fund. Isolux Corsán Group is an unlisted, Spanish company with revenues of $4 billion.

The three NH projects are: 94 km, two-to-six laning project between Kishangarh and Beawar in Rajasthan; a 133 km, two-to-four laning project from Maharashtra-Gujarat Border to Hazira in Gujarat; and a 192 km, four-to-six laning project from Varanasi to Aurangabad in Uttar Pradesh and Bihar.

All three projects are financially closed and have concession lives of 18-30 years, with expected completion dates in 2012 and 2013.

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