Asian Development Bank to invest 100 million USD in NIIF
On March 30, 2020, the Asian Development Bank announced that it is to invest 100 million USD in National Investment and Infrastructure Fund (NIIF). The investment during an economic slow down is a great boost for the Indian Economy.
The National Investment and Infrastructure Funds were set up in 2015. The main purpose of the fund is to aid Greenfield and brownfield projects in the country. When an entity is to use the benefits of the funds, the Indian Government invests 49% and the rest has to be raised from third party investors.
The NIIF makes it mandatory that the funds shall be invested in the areas such as transportation, energy, water, housing, waste management.
Major funds of NIIF
There are three major funds under NIIF. IT includes Master Fund, Fund of Funds and Strategic Investment Fund
This is an infrastructure fund. These funds shall be used in core infrastructure sectors such as ports, road, power, etc.
Fund of funds
The fund of funds shall be used on affordable housing, green infrastructure and infrastructure services. These funds are availed only to fund managers who have good track on infrastructure projects
Strategic Investment Fund
This fund is registered under SEBI. These funds focus on green field and brown field investments.
Category: Economy & Banking Current Affairs