CDC invests $25m in rural-focused India rail freight business

The company provides services in rural and under-served parts of the country, notably low-income states such as Uttar Pradesh and Bihar where essential infrastructure is vital to economic growth. Pristine is building greenfield terminals across northern, central and eastern India that will work with companies using the rail freight network.

"Low income states in India face an uphill battle in attracting long-term private capital. Part of the reason is the lack of enabling infrastructure, so this investment will not only create nearly 1,500 jobs directly but will also create 400 shorter-term construction jobs and will contribute more widely to development," Srini Nagarajan, CDC's head of South Asia, said in a statement.

Pristine also plans to develop a food park in Bihar that will create a further 1,800 jobs. Bihar is one of India's largest fruit, vegetable and dairy producing states, but the lack of fast, reliable and temperature-controlled transportation prevents many farmers from getting their produce to market. The park will bring food processing, storage and modern transport services to rural communities.

CDC has been investing in India since 1987 via fund-of-funds and restarted direct investments in 2012. Earlier this month it committed $48 million to multi-specialty healthcare provider Narayana Hrudayalaya Hospitals. Recent fund investments include $30 million for Rabo Equity's India Agri Business Fund II.

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• Topics
• Infrastructure
• Infrastructure
• South Asia
• Expansion
• CDC Group
• Transportation
• Infrastructure
• Growth capital