S H Khan, chairman of the Credit Analysis and Research Ltd (CARE), has been appointed as the chairman of the board of trustees of the fund.

The fund will be placed privately with institutions. An official of Feedback Infrastructure said the projects where investments are made will be able to generate an internal rate of return of 19 to 21 per cent. It will be possible to give a return of at least 19 per cent to investors, he said.

The fund will target road, water supply and sewage projects in about 12 states ranging between Rs 75 crore to Rs 250 crore. The fund will mostly like to take an exposure in the range of 26 to 49 per cent in the special purpose vehicles promoting the project, hesaid. Medium-sized projects are estimated to constitute about 40 per cent of total investments required in developing urban infrastructure in India.

Feedback Infrastructure Ltd, a fully owned subsidiary of Feedback Ventures Ltd will be the Project Development Company (PDC). The PDC will ensure a continuous deal flow and decide on projects where exposure should be taken. The PDC will bid for projects through project specific special purpose vehicles formed in association with relevant partners.

The fund will take a project developer position on economically viable urban infrastructure projects. It will identify and configure projects and negotiate concession agreements with the project sponsor. The fund will structure and mobilise finances, take the project through engineering and construction phases and in some cases even operate the infrastructure facility.

Feedback ventures has been actively involved over the last 15 years in consulting, engineering, project management and project development ofinfrastructure projects focused on transportation, mixed use townships and urban infrastructure.