- National Investment & Infrastructure Fund is a collaborative investment platform for international and Indian investors, anchored by Government of India.
- It was similar to sovereign wealth funds established by many other countries. For ex. Singapore’s Temasek Holdings, UAE’s Emirates Investment Authority etc.
- Currently, NIIF has $4.3 billion of assets under management.
- NIIF is mandated to always keep government as a 49% minority shareholder in each of its investment funds. The whole of 49% is contributed by government directly.
Governing Council of NIIF:
Governing Council has been constituted to oversee the activities of NIIF. Union Finance Minister is the Chairman of Governing Council. Functions of Governing Council are:
- Guidelines for Investment of Trust property/Corpus of NIIF.
- Parameters for appointment and performance of investment managers/advisors.
Funds Managed By NIIF:
Currently, NIIF manages three alternative investment funds (AIFs) under SEBI regulations.
- NIIF Master Fund: It is one of the largest India-focused infrastructure fund. The fund invests in high quality businesses and assets across core infrastructure sectors via both operating and greenfield opportunities.
- Fund of Funds (FoF): Private Equity through third party managers. It is one of the largest India-dedicated Fund of Funds program globally. It invests in funds managed by best-in-class fund managers focused on some sectors such as climate infrastructure, middle-income & affordable housing, digital consumer platforms and other allied sectors.
- Strategic Opportunities Fund (SoF): It is a direct growth equity fund. It has been established to provide long-term capital to high-growth future ready businesses in India.
India Japan Fund:
NIIF's first bilateral fund formed through an MoU between NIIF and Japan Bank for International Development (JBIC) to promote and enhance Japanese investments in India.
Salient features
- Make equity investments in environmental preservation and low carbon emission strategies.
- Enhance cooperation between India & Japan by investing in strategic partnerships between Japanese and Indian companies and promoting business collaboration across multiple sectors in India.
- In addition, JBIC will consider providing debt financing under their 'Global action for Reconciling Economic growth and Environment preservation' initiative (GREEN Initiative) to investee companies of funds managed by NIIF.