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National Investment and Infrastructure Fund (NIIF)
Why is it in the news?
- Australia’s largest superannuation fund AustralianSuper and Canada’s Ontario Teachers’ Pension Plan have each signed agreements to invest up to $1 billion with the NIIF Master Fund.
More in the news
- The agreements include commitments of $250 million each in the Master Fund and co-investment rights of up to $750 million each in future opportunities alongside the Fund.
- With this, NIIF Master Fund becomes the largest infrastructure fund in India with assets under management of over $1.8 billion.
- The Master Fund has a tenure of 15 years and is denominated in Indian rupees to suit the requirements of the infrastructure sector.
National Investment and Infrastructure Fund (NIIF):
- The NIIF invests in equity capital in the country’s core infrastructure sectors with a focus on transportation, energy and urban infrastructure.
- The NIIF is a trust that mobilizes funds so that it can give finance to the major infrastructure financing companies in the country.
- The objective of NIIF would be to maximize economic impact mainly through infrastructure development in commercially viable projects, both greenfield and brownfield, including stalled projects.
- In December 2015, the NIIF was registered as a Category II AIF (Alternative Investment Fund) with SEBI.
- The Indian government has 49% stake in NIIF with the rest held by marquee foreign and domestic investors such as Abu Dhabi Investment Authority, Temasek and HDFC Group.
Source
The Hindu.