Original disclosure @ DFC website
Updated in EWS May 26, 2022
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According to DFC, the proposed fund is expected to have a positive developmental impact in India
by making investments in infrastructure projects which will have outsizedimpacts for the overall population of the lower middle-income country.Despite being one of the fastest growing countries in the previous threedecades and the fifth largest nominal GDP in the world, India suffers from a significant infrastructure deficit, holding back further sustainable
growth for the country. India ranks 70th out of 144 countries inappropriate quality of infrastructure according to the World Economic Forum’s Global Competitiveness index, and 18th within the G20. TheFund focuses on investing in infrastructure, including energy, transportation, and urban infrastructure, that is essential and critical forthe long-term sustainable growth of the Indian economy. These infrastructure investments expect to contribute to further development inIndia by reducing production, transportation and communication costs and fostering downstream positive externalities directly and indirectly
related to the projects supported. Finally, the project expects to hav edemonstration effects through a private sector approach to an industry that has traditionally been majority controlled by the Indian government.
The project involves an equity investment into a fund that will invest in Indian infrastructure platforms that will in turn invest in operational assets, assets under construction and some greenfield projects. The project also involves an equity investment in a fund manager that manages several investment funds.
The capitalization of a fund is screened as a Category D activity for thepurposes of environmental and social assessment. Based on DFC’s due diligence, the Fund’s downstream investments are anticipated to posemedium to high environmental and social risks.
Up to $54.91 million Indian National Rupees (“INR”) equivalent of equity in the Fund.
Up to $1.28 million INR equivalent equity investment in the Fund Manager
Target Fund Size: $2,800 million INR equivalent
ACCESS TO INFORMATION
Unlike many other development finance institutions, DFC does not currently have an access to information policy.
Under the United States Freedom of Information Act (FOIA), DFC is obliged to respond to reasonably formulated requests for Agency records. However, DFC may apply exemptions from release to certain types of information and may charge fees in responding to requests. DFC has a designated FOIA officer who is trained in how to respond to requests and implement the law. You can learn more about filing a FOIA request at: https://www.dfc.gov/foia
ACCOUNTABILITY MECHANISM OF THE UNITED STATES INTERNATIONAL DEVELOPMENT FINANCE CORPORATION (DFC)
The Office of Accountability is an independent office that addresses complaints about environmental or social issues related to DFC-supported projects. The office provides communities an opportunity to have concerns independently reviewed and addressed. If you submit a complaint to the Office of Accountability, it may assist you by either seeking to address your problems by facilitating a problem solving dialogue between you and those implementing the project and/or investigating whether the DFC complied with its policies to prevent environmental, social, human rights, and labor harms.
You can find more information about the Office of Accountability at: https://www.dfc.gov/who-we-are/office-accountability