NATIONAL INVESTMENT AND INFRASTRUCTURE FUND (NIIF) - ECONOMY
News:
NIIF unveils $600mn
India-Japan Fund
What's
in the news?
●
The National Investment and Infrastructure
Fund has entered into a collaboration with Japan Bank for International
Cooperation (JBIC) to unveil a $600 million India-Japan Fund.
Key
takeaways:
●
The fund will have JBIC and Government of India as anchor investors.
●
It will focus on investing in
environmental sustainability and low carbon emission strategies and aims to
play the role of being a ‘partner of choice’ to further enhance Japanese
investments into India, a finance ministry statement.
●
The announcement marks NIIF’s first bilateral fund, with GoI
contributing 49% of the target corpus and the remaining 51% contributed by
JBIC.
National
Investment and Infrastructure Fund (NIIF):
●
It is an investor-owned fund manager, anchored by the Government of India
(GoI) in collaboration with leading global and domestic institutional
investors.
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It is India’s first-ever sovereign wealth fund (SWF) which was set up in the year
2015.
Features:
●
It is an institution for enhancing
infrastructure financing by investing in greenfield
(new), brownfield (existing) and stalled projects.
●
The funds are registered as Alternative
Investment Fund (AIF) with the Securities and Exchange Board of India (SEBI).
Objectives:
●
The primary goal of setting up NIIF was to
optimize the economic impact largely through investing in
infrastructure-related projects.
Types
of NIIF Funds:
1.
Master Fund:
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This fund primarily invests in infra-related projects such as roads,
ports, airports, and power.
●
Also, the master fund invests in
well-established enterprises that are into a long-term agreement and are
operating in a regulated environment with a good history.
2.
Fund of Funds:
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It looks to invest in funds managed by the renowned fund managers
having an excellent track record.
●
The fund of funds invests as anchor
investors and this enables the fund managers to accumulate more funds from the
institutional investors
3.
Strategic Fund:
●
This fund is registered as an Alternative Fund II under the Securities
and Exchange Board of India (SEBI) in India.
●
Strategic funds invest primarily in equity
and equity-linked instruments.