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Monday, August 3, 2015

National Investment and Infrastructure Fund (NIIF)

The proposed Rs.20,000-crore National Investment and Infrastructure Fund (NIIF) will function as a sovereign wealth fund like Singapore’s Temasek and operate at ‘arm’s length’ from the government, Minister of State for Finance Jayant Sinha said on Friday July 31,2015

National Investment and Infrastructure Fund (NIIF) is a fund created for enhancing infrastructure financing in the country. NIIF, proposed to be set up as a Trust, would raise debt to invest in the equity of infrastructure finance companies such as Indian Rail Finance Corporation(IRFC) and National Housing Bank(NHB)

NIIF creation was announced in the 2015-16 Union Budget

To be operational by December 2015,NIIF will primarily focus on fund infusion in infrastructure projects -Greenfield,Brownfield and Stalled ones

NIIF will be based in Mumbai and will operate at arm's length from the Union Govt

Union Govt's Equity in NIIF is limited to 49% and the balance to be held by large business groups as well as provident fund,endowment and sovereign wealth funds

To be operational by the year end, NIIF will primarily focus on fund infusion in infrastructure projects -- greenfield, brownfield and the stalled ones

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