With a view to realizing the dream of Development for all, the Government of India has placed investment in infrastructure as one of the key drivers of development of the Indian economy. Since infrastructure investments require long term patient capital, the Government announced the setting up of National Investment and Infrastructure Fund (NIIF), as a quasi-sovereign wealth fund.
The corpus of the Fund is proposed to be of the order of Rs.40,000 cr (US$6 billion) wherein the Government of India would invest 49%, circa Rs.20,000 cr (US$3 billion).
NIIF is expected play the role of a catalyst for supporting investments in infrastructure with the objective of maximizing economic impact through investments in commercially viable projects, both greenfield and brownfield, including stalled projects. NIIF shall also consider other nationally important projects, if found commercially viable.
NIIF will raise third party capital for the remaining Rs.20,000 crore (US$ 3 billion), from long term international investors, such as a Sovereign Wealth Funds, Insurance and Pension Funds, endowments etc.
National Investment and Infrastructure Fund (NIIF) is formed as a trust (set up under the provisions of Indian Trusts Act 1882) created by the Government of India. NIIF is registered with Securities and Exchange Board of India ("SEBI") as a Category II Alternate Investment Fund ("AIF") under the SEBI (Alternative Investments Funds) Regulations, 2012 ("AIF Regulations").
The fund has been set up as a fund of funds structure with an aim to generate risk adjusted returns for its investors alongside promoting infrastructure development and technology in the country by means of investments.
National Investment and Infrastructure Fund Trustee Ltd. ("NIIF Trustee Ltd."), a 100% Government of India owned company is the trustee to NIIF.National Investment and Infrastructure Fund Ltd. ("NIIF Ltd.") is the investment manager to NIIF, in which 51% stake shall be offered to investors other than the Government of India, and balance 49% stake shall remain with Government of India.
NIIF Ltd would be managed by an independent team of professionals sourced from the market with relevant experience.