Tata Group hopes to close a $1 billion infrastructure fund by the end of the year and plans to invest it through its realty and infrastrucure unit, a senior official said on Wednesday.

"This will meet a large part of our equity and debt requirements... elections were a decisive factor and investors are very excited," Tata Realty and Infrastructure chief financial officer Kishore Saletore told reporters.

The fund opened for subscription in mid 2008. Tata Realty plans to invest 200 billion rupees ($4.2 billion) over three years, he added. Tata is among India's most diversified business groups, with interests in areas such as food, steel, auto, chemicals and software.