GOA, India Oct 14 The state-backed Russian
Direct Investment Fund (RDIF) will work with an Indian fund to
invest $1 billion in Asia's third-largest economy, the head of
the fund said before a bilateral summit expected to yield
several big business deals.
The RDIF and India's National Investment and Infrastructure
Fund (NIIF) will each invest up to $500 million in the joint
fund, replicating partnerships the Russian entity has with
countries like China.
"We helped in the process of the NIIF being created," RDIF
CEO Kirill Dmitriev said in an interview with Reuters. "Now we
will provide equity capital to joint Russian-Indian projects,
mainly in India."
The RDIF was set up by Dmitriev in 2011 with billions in
Kremlin cash and has since made partial exits from bets in
Russia, including the Moscow Stock Exchange, diamond miner
Alrosa and Rostelekom.
It also worked with Indian infrastructure investor IDFC to
invest $1 billion in power projects when President Vladimir
Putin last visited India in late 2014.
India is courting international investors to help finance
new roads, railways and power projects that the country needs.
Putin will meet Indian Prime Minister Narendra Modi in the
tourist destination of Goa on Saturday for a summit at which
major defence, oil and nuclear power agreements are expected to
The RDIF-NIIF partnership will also be sealed at the summit.
It will address around 20 investment proposals and seek to
strike its first deals in 2017, said Dmitriev.
Leaders of the BRICS caucus - Brazil, Russia, India, China
and South Africa - will also gather in Goa this weekend. The
bloc has founded its own New Development Bank that has
co-invested in two RDIF-backed hydropower plants in Russia that
have just broken ground.
Dmitriev said he hoped that the Russian fund would be able
to draw on the platform of the BRICS bank to build similar
small-scale hydro projects in India that are based on Russian
(Reporting by Douglas Busvine, editing by Larry King)