If it is so good an investment, then why need fund from outsider? India govt doesn't have US$2 billion to build roads? 
So will Temasek take the bait? I honestly think so.
http://online.wsj.com/article/SB100...5294120593747804.html?mod=WSJ_latestheadlines
JUNE 8, 2010, 10:33 A.M. ET
India, Temasek Seek Road Fund
By GAURAV RAGHUVANSHI
SINGAPORE—India is negotiating a US$2 billion fund with Singapore's state investment company Temasek Holdings Pte. Ltd. for infrastructure projects in the world's second-fastest-growing major economy.
"It's a good investment opportunity, and they [Temasek] are looking at it," Kamal Nath, India's minister for road transport and highways, said Tuesday. "They have to look at whether they fund individual projects or set up some holding structures."
Mr. Nath said he will meet with Temasek officials on Wednesday. Temasek didn't immediately respond to a request for comment.
India plans to spend $60 billion over the next five years to build new roads or improve existing ones across its vast territory.
"India's economic growth is expected to surpass every other economy except China, and that will generate substantial infrastructure need. That should make it an attractive investment opportunity for Temasek," said David Cohen, director of Asian Economic Forecasting at Action Economics.
Indian companies have signed nearly $5 billion worth of road-building deals with international investors in the last year, and Mr. Nath said he expects the pace to increase.
"In India, we are building not just for the future, we're catching up with the past," he said. "To sustain our growth, the infrastructure deficit has to be bridged, and in that deficit the road deficit is the highest."
Mr. Nath is a high-profile politician who earlier negotiated for India at the World Trade Organization when he was trade minister. His decision to take on responsibility for roads and highways is seen as an indication of the post's importance after Prime Minister Manmohan Singh returned for a second five-year term last year.
At a conference in March, Mr. Nath declared that of India's 70,000 kilometers of highways, 16,000 "aren't worth driving on." He said 40% of India's fruits and vegetables rot before reaching market because of delays from poor roads and rail lines.
Other estimates say that poor infrastructure costs India as much as two percentage points of gross domestic product growth annually. India's economy expanded 8.6% in the January-March quarter from a year ago, and chalked up 7.4% growth for the fiscal year that ended March 31.
Asked about previous Indian governments' poor record on infrastructure, Mr. Nath said his ministry is ensuring that only projects backed by serious feasibility reports are put out for competitive bidding.
"It's not just about funds availability, but how much each infrastructure sector can absorb," he said. "We must have viable projects in hand. Those sectors that are able to absorb these funds will be the biggest beneficiaries."
In a report released in New Delhi on Tuesday, the Planning Commission, the top government policy think tank, recommended raising $11 billion by selling bonds in local and overseas markets over the next three years to fund construction of roads, ports, airports and power plants.
So will Temasek take the bait? I honestly think so. http://online.wsj.com/article/SB100...5294120593747804.html?mod=WSJ_latestheadlines
JUNE 8, 2010, 10:33 A.M. ET
India, Temasek Seek Road Fund
By GAURAV RAGHUVANSHI
SINGAPORE—India is negotiating a US$2 billion fund with Singapore's state investment company Temasek Holdings Pte. Ltd. for infrastructure projects in the world's second-fastest-growing major economy.
"It's a good investment opportunity, and they [Temasek] are looking at it," Kamal Nath, India's minister for road transport and highways, said Tuesday. "They have to look at whether they fund individual projects or set up some holding structures."
Mr. Nath said he will meet with Temasek officials on Wednesday. Temasek didn't immediately respond to a request for comment.
India plans to spend $60 billion over the next five years to build new roads or improve existing ones across its vast territory.
"India's economic growth is expected to surpass every other economy except China, and that will generate substantial infrastructure need. That should make it an attractive investment opportunity for Temasek," said David Cohen, director of Asian Economic Forecasting at Action Economics.
Indian companies have signed nearly $5 billion worth of road-building deals with international investors in the last year, and Mr. Nath said he expects the pace to increase.
"In India, we are building not just for the future, we're catching up with the past," he said. "To sustain our growth, the infrastructure deficit has to be bridged, and in that deficit the road deficit is the highest."
Mr. Nath is a high-profile politician who earlier negotiated for India at the World Trade Organization when he was trade minister. His decision to take on responsibility for roads and highways is seen as an indication of the post's importance after Prime Minister Manmohan Singh returned for a second five-year term last year.
At a conference in March, Mr. Nath declared that of India's 70,000 kilometers of highways, 16,000 "aren't worth driving on." He said 40% of India's fruits and vegetables rot before reaching market because of delays from poor roads and rail lines.
Other estimates say that poor infrastructure costs India as much as two percentage points of gross domestic product growth annually. India's economy expanded 8.6% in the January-March quarter from a year ago, and chalked up 7.4% growth for the fiscal year that ended March 31.
Asked about previous Indian governments' poor record on infrastructure, Mr. Nath said his ministry is ensuring that only projects backed by serious feasibility reports are put out for competitive bidding.
"It's not just about funds availability, but how much each infrastructure sector can absorb," he said. "We must have viable projects in hand. Those sectors that are able to absorb these funds will be the biggest beneficiaries."
In a report released in New Delhi on Tuesday, the Planning Commission, the top government policy think tank, recommended raising $11 billion by selling bonds in local and overseas markets over the next three years to fund construction of roads, ports, airports and power plants.
