In an attempt to accelerate the infrastructure projects across segment, the Union Cabinet in a latest move has cleared the creation of a Rs. 20,000cr, National Investment and Infrastructure Fund (NIIF), which is a sort of sovereign fund for development of infrastructure projects across the country, said the official sources claiming that the fund has been aimed at maximizing "economic impact" mainly through infrastructure development in commercially viable projects, both Greenfield and Brownfield, including the stalled ones. In addition, the fund will also be available for financing nationally important projects in the manufacturing sector and that in the initial stages the authorized capital of NIIF would be Rs. 20,000cr, which will be raised from time to time as decided by the Finance Ministry. On this score, the government would contribute 49% of the subscribed capital of NIIF as its contribution would enable it to be seen virtually as a sovereign fund and is expected to attract overseas sovereign/quasi sovereign/multi-lateral/bilateral investors to co-invest. Besides, it would also solicit equity participation from strategic anchor partners. Ensuring sufficient flow of funds to the NIIF, domestic pension and provident funds, and the national small saving fund may also provide funds to the infra funds and that the proceeds of the monetized land and other assets of public sector undertakings will also add to the infrastructure developments.
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