Highlights

Union Cabinet of India approved Rupees 6,000 crores of capital infusion into the National Infrastructure Investment Fund (NIIF). This is a part of the GoI initiative Atma Nirbhar Bharat Abhiyan. The move will leverage to create financial pipeline of Rupees 1 lakh crore.

Prime Minister of India ex-officio chairman and head of the Union Cabinet.

NIIF

In February 2015, Indian Government set up National Infrastructure Investment Fund. The main objective of creating the NIIF was to increase the investment in Greenfield and brownfield projects. NIIF manages 3 funds namely

  • Master fund
  • Strategic fund
  • Fund of funds

The master fund is primarily invested in in building roads, ports, airports, power, etc. The fund of funds is managed by managers with good track records in infrastructure sectors. These funds mainly focus on infrastructure services and allied sectors, green infrastructure and mid income and affordable housing. Strategic investment fund is an alternative investment fund and is managed by Securities and Exchange Board of India. It mainly focuses on equity and equity linked instruments. This fund is often allocated to brownfield and Greenfield investment in the core infrastructure sectors.

National Infrastructure Pipeline (NIP)

The NIP includes social and economic Infrastructure Projects. A task force has been constituted in 2019 to draw up a NIP for 2019 to 2025. The NIP will mainly focus on projects that will enhance ease of living. It includes access to clean and affordable energy, safe drinking water, more than railway stations, bus terminal, airport and world-class Educational Institutes. It is estimated that from 2020 to 2025 the sectors such as roads, energy, Urban and Railways or to constitutes to 70 per cent of the total expenditure in infrastructure in India. The Central Government is of the plan to invest more than Rupees 100 lakh crores in infrastructure sector in coming 5 years.

These steps will help India achieve its goal of $5 trillion economy by 2024-25. Union Cabinet approves Capital Infusion of Rs 6000 crore Union Cabinet approves Capital Infusion of Rs 6000 crore