Indian Transport Minister Kamal Nath said he will meet with Temasek Holdings to discuss the “idea” of setting up a fund to invest in roads, ports and airports as the country seeks to improve infrastructure.

 

The minister said he will meet with the Singapore state- owned investment company today, when asked about a Wall Street Journal report yesterday that India is in talks about creating a US$2 billion ($2.83 billion) fund. Jeffrey Fang, a spokesman for Temasek, declined to comment when contacted by Bloomberg News.

 

India made the proposal in an October meeting with Temasek Chief Executive Officer Ho Ching, Nath told reporters in Singapore today. The South Asian country said in May it plans to set up 500 billion-rupee ($15.5 billion) debt fund to upgrade infrastructure and fuel economic growth. India is the world’s second-fastest growing major economy.

 

India is seeking to attract foreign capital after a US$5 billion fund planned in 2007 with Citigroup Inc. and Blackstone Group LP was shelved. The country got as much as US$3 billion from overseas investors in roads in the past year, Nath said today.

 

The nation is meeting its target of building 20 kilometers (12 miles) of roads and highways every day, Nath said.

 

Roads, used for transporting 65% of India’s freight, are plagued by single lanes and irregular surfaces that slow trucks to an average speed of about 20 kilometers per hour, according to a 2009 study by the Indian Institute of Management Calcutta and Transport Corp. of India.