A $500 million fund has been launched by a consortium of investment firms and a bank that will invest in India’s infrastructure, says FinanceAsia.

The Unit Trust of India Partners has joined with Danish HDSH Nordbank and  Kuwaiti Noor Financial Investment to create the India Infrastructure Development fund, a private equity fund that will invest in projects offered to private developers under the public-private partnership model.

"A significant number of PPP projects across various infrastructure sectors are being offered to private developers, recognising this potential, we decided to set up this fund," UK Sinha, chairman and managing director of UTI AMC is quoted as saying.

Infrastructure funds, which hold assets ranging from toll roads to airports, have been a regular feature of product launches in investment markets, as these are seen as offering relatively stable, inflation-proofed returns over the long run, and hence attractive to investors with long time horizons.

According to the report, the fund will combine several inflows from offshore investors as well as using home grown resources.

In a bid to plug a hole in the country’s infrastructure, India has been keen to promote PPPs whereby government and private companies share funding and administrative burden for the projects.