Union Cabinet: Capital Infusion of Rs 6,000 crores into NIIF approved

On November 25, 2020, the Union Cabinet approved Rs 6,000 crores of capital infusion into the National Infrastructure Investment Fund. This is a part of the Atma Nirbhar Bharat Abhiyan. The move will leverage to create financial pipeline of Rs 1 lakh crore.

National infrastructure investment fund

The National Investment Infrastructure Fund was set up by Government of India in February 2015. The main objective of creating the fund was to increase the investment in Greenfield and brownfield projects. National investment and Infrastructure Fund manages three funds namely master fund, strategic fund, fund of funds. The master fund is primarily invested in in building roads, airports, ports, 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 SEBI. 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

The National Infrastructure Pipeline includes social and economic Infrastructure Projects. A task force has been constituted in 2019 to draw up a national infrastructure pipeline for the years 2019 to 2025. The pipeline 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 between 2020 and 2025 the sectors such as roads, energy, Urban and Railways or to constitutes to 70% of the total expenditure in infrastructure in India. The Government of India is of the plan to invest more than hundred lakh crores of Rupees in infrastructure sector in the next five years.

These steps will help India achieve its goal of 5 trillion USD economy by 2024-25.

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