The recent partnership between the National Thermal Power Corporation Limited (NTPC Ltd.) and the National Investment and Infrastructure Fund (NIIF) has been making the headlines. This collaboration, established via a Memorandum of Understanding (MoU), aims to discover investment opportunities in areas such as renewable energy, power distribution, and other mutually beneficial sectors in India.
About NTPC Ltd.
Established in 1975, NTPC Ltd. operates as a central Public Sector Undertaking (PSU) under the Ministry of Power. Its primary objective is to expedite power development across the nation. As India’s largest energy conglomerate, NTPC Ltd. strives to provide reliable power and related solutions in an economically efficient and eco-friendly manner. These solutions are heavily guided by innovation and agility.
The company earned the status of a Maharatna company in May 2010 and is currently based in New Delhi.
Recent Initiatives by NTPC Ltd.
In an effort to boost its portfolio, NTPC Ltd. has undertaken several initiatives. This includes developing public charging infrastructure in numerous cities and commissioning battery charging and swapping stations for electric three-wheelers. Another example is providing electric buses to state/city transport ventures, with an ongoing project to supply e-bus solutions for the Andaman and Nicobar Administration.
One of their newest ventures is the commencement of a project involving hydrogen Fuel Cell Electric Vehicles (FCEV) set to operate in Delhi and Leh.
About National Investment and Infrastructure Fund Limited
The National Investment and Infrastructure Fund Limited (NIIFL) is an investment platform that encourages both Indian and international investors, backed by the Government of India. Founded in December 2015, its primary goal is to encourage funding into India’s core sector.
NIIFL invests in a range of asset classes including infrastructure, private equity, and other diversified sectors in India. The aim is to achieve attractive risk-adjusted returns for its investors. A targeted corpus of Rs. 40,000 crore is planned to be raised over time, with the government funding 49% at any given point while the remaining 51% comes from domestic and global investors.
Overseeing the Funds
Registered with the Securities and Exchange Board of India (SEBI) as a Category II Alternate Investment Fund on December 28th, 2015, NIIFL manages over USD 4.3 billion of equity capital commitments. These are spread across three funds – Master Fund, the Fund of Funds, and the Strategic Opportunities Fund.
The NIIF Master Fund, being the biggest infrastructure fund in India, invests predominantly in core infrastructure sectors such as transportation and energy. An advisory council, governed by the Finance Minister, provides guidelines to the NIIF.
