A few months ago, the National Investment and Infrastructure Fund (NIIF) started off with its funding activity with the global operator of marine and inland terminals DP World by creating a platform for investing up to USD 3 billion in ports and logistics. Now, the finance ministry has planned to set up a fund which will be dedicated to the strategic investments.
For the current fiscal, the NIIF has planned to raise Rs. 8,000 crores from varied sources to fund the projects worth Rs. 16,000 crores. For this, the Indian government has assigned budgetary support of Rs. 1,000 crore to the NIIF which will be leveraged to raise the planned amount from the strategic anchor partners, such as multilateral and bilateral institutions, sovereign wealth funds, pension funds, and domestic public sector enterprises.
It was in on October 16, 2017, when the first close of the NIIF Master Fund took place with offerings from a subsidiary of Abu Dhabi Investment Authority (ADIA) and four Domestic Institutional Investors (DIIs) – namely – HDFC Group, ICICI Bank, Kotak Mahindra Life, and Axis Bank.
Apart from this, there is another India-UK Green Growth Equity Fund is being set up under the fund of funds vertical of NIIF, and will also have anchor assurances of GBP 120 million each from Government of India and Government of UK.
Three Alternative Investment Funds (AIFs) are currently being established to operate NIIF under the Sebi Regulations. NIIF’s proposed quantity is Rs. 40,000 crores out of which, 49% of the total commitment will be contributed by the Government of India to the AIFs under the NIIF scheme!
The NIIF has commanded to implore equity participation from strategic anchor partners, like overseas sovereign/quasi-sovereign/multilateral /bilateral investors.