Topics Covered: Infrastructure.
National Investment and Infrastructure Fund (NIIF):
Canada’s PSP, US’ DFC, Axis Bank invest $107 million in NIIF’s master fund.
- After the new commitment from the three investors, the overall size of the ‘master fund’ has touched USD 2.34 billion.
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.
- 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).
- The NIIF signed the first investment deal of worth USD 1 billion with the Abu Dhabi Investment Authority (ADIA) in October 2017. The ADIA became the first-ever international investor in the NIIF’s master fund.
- The Indian Government holds a 49% share in the NIIF. Domestic investors such as ICICI Bank, HDFC Bank, Axis Bank, Kotak Mahindra Life are the other notable investors in the NIIF.
- The Asian Infrastructure Investment Bank in June 2018 announced to invest USD 200 million.
The three funds are:
- Master Fund: Is an infrastructure fund with the objective of primarily investing in operating assets in the core infrastructure sectors such as roads, ports, airports, power etc.
- Fund of Funds: Managed by fund managers who have good track records in infrastructure and associated sectors in India. Some of the sectors of focus include Green Infrastructure, Mid-Income & Affordable Housing, Infrastructure services and allied sectors.
- Strategic Investment Fund: Is registered as an Alternative Investment Fund II under SEBI in India. The objective is to invest largely in equity and equity-linked instruments. It will focus on green field and brown field investments in the core infrastructure sectors.
- About NIIF.
- Different funds under NIIF.
- Who manages NIIF.
- What are alternative investment funds?
Discuss the significance of NIIF in the context infrastructure development in India.
Sources: the Hindu.