Aiming to increase investment flows into infrastructure projects, the government has set the proposed National Investment and Infrastructure Fund (NIIF) rolling.
In the first meeting of the governing council of NIIF, which was held recently, the broad road map for future activities of the fund were discussed.
The fund was registered as a category II alternative investment fund with the Securities and Exchange Board of India (Sebi) recently.
The finance ministry has appointed India Infrastructure Finance Co. Ltd (IIFCL) as investment adviser to NIIF and IDBI Capital Market Services Ltd as an adviser to NIIF Trustee Ltd initially for six months and one year respectively.
Several sovereign funds and pension funds across the world have expressed their willingness to participate and cooperate in various manners with the NIIF.
About NIIF:
The Union Cabinet, in July 2015, had approved creation of National Infrastructure and Investment Fund (NIIF) as a trust that will have a corpus of Rs 20,000 crore.
The Fund aims to attract investment from both domestic and international sources.
The government’s contribution would be limited to 49% of the subscribed capital.
The government will seek participation from strategic investors such as sovereign fund, quasi sovereign funds and multilateral or bilateral investors, which can help leverage this fund to many times.
Cash-rich PSUs, pension funds, provident funds, National Small Saving Fund will be able to pick up stake in the fund.
The decision to set up NIIF was announced by the union Finance minister Arun Jaitley in his budget speech.
The government has budgeted to contribute Rs.20,000 crore to the fund in the current fiscal year while another Rs.20,000 crore is expected to be raised through sovereign wealth funds.
The Governing Council of the Fund has decided to complete by January-end the selection process of the Chief Executive of the investment management company responsible for taking investment decisions of its corpus.
sources: the hindu, pib.
In the first meeting of the governing council of NIIF, which was held recently, the broad road map for future activities of the fund were discussed.
The fund was registered as a category II alternative investment fund with the Securities and Exchange Board of India (Sebi) recently.
The finance ministry has appointed India Infrastructure Finance Co. Ltd (IIFCL) as investment adviser to NIIF and IDBI Capital Market Services Ltd as an adviser to NIIF Trustee Ltd initially for six months and one year respectively.
Several sovereign funds and pension funds across the world have expressed their willingness to participate and cooperate in various manners with the NIIF.
About NIIF:
The Union Cabinet, in July 2015, had approved creation of National Infrastructure and Investment Fund (NIIF) as a trust that will have a corpus of Rs 20,000 crore.
The Fund aims to attract investment from both domestic and international sources.
The government’s contribution would be limited to 49% of the subscribed capital.
The government will seek participation from strategic investors such as sovereign fund, quasi sovereign funds and multilateral or bilateral investors, which can help leverage this fund to many times.
Cash-rich PSUs, pension funds, provident funds, National Small Saving Fund will be able to pick up stake in the fund.
The decision to set up NIIF was announced by the union Finance minister Arun Jaitley in his budget speech.
The government has budgeted to contribute Rs.20,000 crore to the fund in the current fiscal year while another Rs.20,000 crore is expected to be raised through sovereign wealth funds.
The Governing Council of the Fund has decided to complete by January-end the selection process of the Chief Executive of the investment management company responsible for taking investment decisions of its corpus.
sources: the hindu, pib.
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