Topic: Infrastructure: Energy, Ports, Roads, Airports, Railways etc. and related issues.
5) Discuss the significance of National Investment and Infrastructure Fund (NIIF) and the need for Infrastructure funding in India.(250 words)
Why this question:
Roadis, a private investor and operator of transport infrastructure worldwide and the National Investment and Infrastructure Fund (NIIF) have jointly set up a platform to invest in road projects in India. The platform would invest up to $2 billion of equity targeting toll-operate-transfer models, acquisitions of existing road concessions and investment opportunities in the road sector with an aim to create a large roads platform in the country.
Key demand of the question:
The answer must discuss National Investment and Infrastructure Fund (NIIF) and need for infrastructure funding in India.
Discuss – This is an all-encompassing directive – you have to debate on paper by going through the details of the issues concerned by examining each one of them. You have to give reasons for both for and against arguments.
Structure of the answer:
Briefly discuss the context of recent initiative – platform to invest in road projects in India.
- The question is straight forward, one must establish the details of National Investment and Infrastructure Fund (NIIF); composition, mandate and other important details.
- About NIIF: The government had set up the ₹40,000 crore NIIF in 2015 as an investment vehicle for funding commercially viable greenfield, brownfield and stalled infrastructure projects. The Indian government is investing 49% and the rest of the corpus is to be raised from third-party investors such as sovereign wealth funds, insurance and pension funds, endowments, etc. NIIF’s mandate includes investing in areas such as energy, transportation, housing, water, waste management and other infrastructure-related sectors in India.
- NIIF currently manages three funds each with its distinctive investment mandate. The funds are registered as Alternative Investment Fund (AIF) with the Securities and Exchange Board of India (SEBI).
- Discuss the three associated funds – Master Fund, Fund of Funds, Strategic Investment Fund etc.
- Discuss the importance of infrastructure funding in India.
Conclude with significance of NIIF and importance of infrastructure funding.