National Infrastructure Investment Fund
National Investment and Infrastructure Fund (NIIF) Limited is a collaborative investment platform for international and Indian investors, anchored by the Government of India.
- The objective of NIIFL is to generate attractive risk-adjusted returns for its investors on infrastructure projects.
- Established in the year 2015, NIIF is the first infrastructure specific investment fund of India.
- It is headquartered in Mumbai, India.
- NIIF signed its first investment agreement of $1 billion with Abu Dhabi Investment Authority (ADIA).
- Recently, NIIF has acquired Essel Dichpally Tollway in Telangana and Essel Devanahalli Tollway in southern Karnataka through its NIIF Master Fund.
NIIF Master Fund
NIIF Master Fund is an infrastructure fund which aims to invest in operating assets in the core infrastructure areas like roads, power, airports, etc. After signing 1st investment agreement with NIIF, ADIA became the first international institutional investor in the master fund. Other contributors of NIIF Master Fund are- ICICI Bank, HDFC group, Axis bank and Kotak Mahindra Life.
Equity Infusion in NIIF Debt Platform
- Union Cabinet has approved an infusion of equity of Rs 6,000 crore in the National Infrastructure Investment Fund (NIIF) debt platform in the next two years.
- NIIF Debt Platform is sponsored by National Investment and Infrastructure Fund, comprising of Aseem Infrastructure Finance Limited (NBFC-IFC) and NIIF Infrastructure Finance Limited (NBFC-IDF).
- This announcement of equity infusion is a part of the Atmanirbhar Bharat 3.0 package.
- This fresh capital infusion will help the platform to raise around Rs 1.10 lakh crore by 2025 for financing infrastructure projects.
Atmanirbhar Bharat Package 3.0
Atmanirbhar Bharat Package 3.0 was announced by the Finance Minister in November 2020. It included measures for relief and stimulus measures of economy. As per the 3.0 Package, an infra project financing of Rs 110,000 crores will be provided to the platform by 2025. The government was to invest Rs 6000 crore as equity in NIIF which has been done now. NIIF has already invested nearly Rs 2000 cr. in equity of the Platform. The rest of the equity will be provided by private investors. NIIF AIFL and IFL will raise a debt of Rs 95,000 crores from market, including project bonds.