Canada's pension fund is ready to invest $2 billion in affordable housing in Mumbai, a top Indian official said, in a move that would boost Prime Minister Narendra Modi's goal of providing cheap housing to millions of people.

Tax Season

"A week back, the Canadian ambassador ... informed me that the Canadian pension fund is ready to invest $2 billion in Mumbai for affordable housing," Devendra Fadnavis, chief minister of Maharashtra state where Mumbai is located, told reporters.

The Canada Pension Plan Investment Board opened an office in Mumbai this month and has already committed to invest more than $2 billion in India.