National Investment and Infrastructure Fund (NIIF)

National Investment and Infrastructure Fund (NIIF) Latest News

The Union Cabinet recently approved an additional Government of India’s investment commitment of Rs. 30,000 crore towards new and upcoming funds of the National Investment and Infrastructure Fund. 

About National Investment and Infrastructure Fund (NIIF)

• It is a fund created by the Government of India for enhancing infrastructure financing in the country. 
• It is India’s first-ever sovereign wealth fund (SWF).
• NIIF got registered with SEBI as Category II Alternative Investment Fund (AIF) on December 28, 2015. 
• It is a collaborative investment platform for international and Indian investors with a mandate to invest equity capital in domestic infrastructure.
• NIIF invests across asset classes such as infrastructure, private equity, and other diversified sectors in India, with the objective of generating attractive risk-adjusted returns for its investors.
• It invests in greenfield (new), brownfield (existing), and stalled projects.
• NIIF is 49% owned by the Indian government and has more than $5 billion in assets under management, making it the country’s biggest infrastructure fund.
• NIIF benefits from its association with the Government yet is independent in its investment decisions.
• It is professionally run and managed by National Investment and Infrastructure Fund Limited (NIIFL).  
• Over the years, NIIF has attracted investments from leading global sovereign wealth funds, pension funds, multilateral development institutions, and domestic financial institutions. 
• Currently, there are four funds under the NIIF Umbrella.  
  • NIIF Master Fund: This fund primarily invests in infra-related projects such as roads, ports, airports, and power. It is the largest infrastructure fund in India. 
  • NIIF Private Markets Fund: Invests in funds managed by third-party managers in infrastructure and associated sectors.
  • NIIF Strategic Opportunities Fund: It invests and develops large-scale businesses and greenfield projects that are of strategic importance to the country.
  • India-Japan Fund: 
    • NIIF’s first bilateral fund invests in environment preservation in India.
    • It also seeks to enable opportunities for collaboration between Indian and Japanese companies in India.
    • The Fund has a target corpus of US$600 million, with the Government of India contributing 49% and the remaining 51% contributed by the Japan Bank for International Cooperation, a policy-based financial institution wholly owned by the Government of Japan.

News: PIB

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