Date 6th Dec 2019 Daily Current Affair –CPPIB to invest $600 mn via NIIF
CPPIB to invest $600 mn via NIIF
Paper: GS 3
Subject: Indian Economy
Topic: Infrastructure – Energy, Ports, Roads, Airports, Railways etc.
- National Investment and Infrastructure Fund (NIIF) is a fund created by the Government of India for enhancing infrastructure financing in the country.
- This is different from the National Investment Fund.
- Objective: to maximize economic impact mainly through infrastructure development in commercially viable projects, both Greenfield and brownfield, including stalled projects.
- NIIF was proposed to be set up as a Trust, to raise debt to invest in the equity of infrastructure finance companies such as Indian Rail Finance Corporation (IRFC) and National Housing Bank (NHB).
- NIIF is envisaged as a fund of fundswith the ability to make direct investments as required. As a fund of fund it may invest in other SEBI registered funds.
- The functions of NIIF are as follows:
- Fund raising through suitable instruments including off-shore credit enhanced bonds, and attracting anchor investors to participate as partners in NIIF;
- Servicing of the investors of NIIF.
- Considering and approving candidate companies/institutions/ projects (including state entities) for investments and periodic monitoring of investments.
- Investing in the corpus created by Asset Management Companies (AMCs) for investing in private equity.
- Preparing a shelf of infrastructure projects and providing advisory service