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National Investment and Infrastructure Fund

National Investment and Infrastructure Fund

Context: India’s National Investment and Infrastructure Fund (NIIF) and Japan Bank for International Cooperation (JBIC) jointly launched a $600 million fund on Wednesday for climate and environment projects. 


Infrastructure projects frequently exhibit long-gestation periods, creating challenge for financial institutions to manage their short-term liabilities with these long-term cash-flow profiles.

To avoid these Asset-liabilities mismatch faced by the banks in funding infrastructure projects, Government has constituted National Investment and Infrastructure Fund (NIIF) with an authorised capital of 20,000 crores, to provide long-term institutional investment support to infra projects in India. 

What is NIIF?

The National Investment and Infrastructure Fund (NIIF) is a state-owned fund created by the GoI in 2015 to support infrastructural development in India, by gathering capital from domestic and international investors.  It has three components under it:

  • Master fund: This fund primarily invests in infra-related projects such as roads, ports, airports, and power. It invests in both green field(new) as well as brownfield(operating) projects. 
  • Fund of Funds: This fund invests in other funds managed by the renowned fund managers having a good track record in funding successful infrastructure projects. That means, this fund acts as an anchor investor to other private funds. 
  • Strategic Opportunities Fund (SOF): SOF targets to invest in companies belonging to sectors that have good growth potential. 


With reference to ‘National Investment and Infrastructure Fund’, which of the following statements is/are correct? (2017)

    1. It is an organ of NITI Aayog.
    2. It has a corpus of Rs. 4,00,000 crores at present.

Select the correct answer using the code given below:

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Answer: d

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