Billionaire founder and chairman of Vedanta Group Anil Agarwal and London-based investment firm Centricus plan to deploy $10 billion (Rs 73,570 crore) to invest in Indian companies, the two firms said.
The target businesses, many of which are major drivers of the Indian economy, will include those majority owned by the government of India, earmarked for divestment and with substantial turnaround and growth opportunities.
The plan will support the government of India’s efforts to achieve disinvestment targets, the firms said.
Investment in these businesses will accelerate their transition to “become independent private-sector companies with professional management, independent governance structures and a commitment to sustainability,” the firms said in a media statement.
The government set an ambitious disinvestment target in February .
Last year, the government said it planned to sell stakes in five state-run companies, including oil refiner Bharat Petroleum Corp (BPCL).
Agarwal said that India is poised to be the fastest-growing large economy over the next decade.
“Its dynamism is based on a world class entrepreneurial private sector, and I believe that this dynamism can be harnessed to unlock incredible transformation in the public sector. We believe that this strategy can, and will, play a crucial role in the country’s ongoing industrialisation,” he added.
“India’s size means that its transformation should result in significant new capital sources for newly-independent Indian companies which will support their development.” Dalinc Ariburnu, Centricus co-founder and former Goldman Sachs partner, said.
Agarwal has proposed this at a time when Vedanta is also raising capital to make a bid for state-run BPCL, media reports said.