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The Union Cabinet's approval of an additional Rs 30,000 crore for the National Investment and Infrastructure Fund is set to accelerate infrastructure build-out and catalyse institutional capital across transportation, energy, digital and emerging sectors, positioning NIIF to deepen its role as India's sovereign-anchored investment platform through 2047.
"Last week approved an additional Government of India's investment commitment of Rs. 30,000 crore towards new and upcoming funds of the National Investment and Infrastructure Fund," Ministry of Finance said in a release. This takes the Government of India's total commitment to NIIF to Rs. 60,000 crore. NIIF, managed by National Investment and Infrastructure Fund Limited, is "India's Sovereign Anchored Fund, professionally run" with GOI holding a 49% stake. It "currently manages capital commitments of approximately Rs. 40,000 crore" and has "returned close to Rs. 12,000 crore to investors through large portfolio exits," the release noted. The fund has drawn marquee global investors including Abu Dhabi Investment Authority, AustralianSuper, CPP Investments, Ontario Teachers' Pension Plan, PSP Investments, Temasek, AIIB, NDB, ADB, JBIC, and U.S. DFC, alongside Axis Bank, HDFC Group, ICICI Bank, Kotak Mahindra Life and SBI. "These investors span diverse geographies... reflecting strong international confidence in India's growth trajectory and NIIF's governance and commercial track record," the release said. The fresh GOI commitment will anchor "NIIF's second infrastructure-focused fund," successor to its first Rs 16,000 crore flagship, with a "target corpus of close to Rs. 30,000 crore." NIIF Infrastructure Fund II is "expected to undertake investments across transportation, energy, digital infrastructure, and emerging areas such as urban infrastructure and e-mobility." Allocation will also back new strategies and successor bilateral funds, including the India-Japan Fund focused on climate, circular economy and energy transition. NIIF's four strategies -- infrastructure, private markets, growth equity, and climate investments -- have deployed capital in line with "Gati Shakti, Digital India, Make in India, COP commitments and flagship schemes including FAME and PM E-DRIVE." Its Private Markets Fund backs AIFs in climate, affordable housing and healthcare, while the Strategic Opportunities Fund targets financial services, healthcare and manufacturing. Beyond capital, NIIF provides "strategic advisory" to government entities on PPPs and monetisation, including support for the Maritime Development Fund and Research Development and Innovation Fund. "The present Government allocation is expected to have a catalytic impact for the economy through investments in underlying assets and portfolio companies, thereby contributing to high quality infrastructure, creation of jobs...and supporting Atmanirbharta and the country's journey towards becoming a Viksit Bharat by 2047," the release said. (ANI)
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