National Investment and Infrastructure Fund (NIIF)
- Context: The Union Cabinet has approved an additional investment by the Government of India of ₹30,000 crore in the National Investment and Infrastructure Fund (NIIF) to be used for its upcoming funds.
About National Investment and Infrastructure Fund (NIIF)
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- The National Investment and Infrastructure Fund (NIIF) is a fund manager that invests in infrastructure and related sectors in India.
- It was established in 2015 and is India’s first Sovereign Wealth Fund (SWF).
- NIIF is supported by the Government of India and provides a platform where both Indian and foreign investors can invest in infrastructure projects.
- It mainly invests in infrastructure, private equity, and other sectors with the aim of earning good returns while managing risks.
- The fund invests in greenfield projects (new projects), brownfield projects (existing projects), and stalled projects.
- The Government of India owns 49% of NIIF, while the remaining share is held by institutional investors.
- NIIF manages over US$4.9 billion in assets, making it India’s largest infrastructure investment fund.
- Although it is backed by the government, NIIF takes investment decisions independently.
- It is managed by experienced investment and infrastructure professionals.
- NIIF’s funds are registered as Alternative Investment Funds (AIFs) with the Securities and Exchange Board of India (SEBI).
- It raises money from Indian and international institutional investors.
Funds Managed by NIIF
- NIIF Master Fund
- Invests mainly in infrastructure sectors such as: Roads, Ports, Airports, Power
- It is the largest infrastructure fund in India.
- NIIF Private Markets Fund
- Invests in funds managed by other professional fund managers that focus on infrastructure and related sectors.
- NIIF Strategic Opportunities Fund
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- Invests in and develops large businesses and new (greenfield) projects that are important for India’s long-term growth.
