The government had set up The National Investment and Infrastructure Fund (NIIF) with the aim to attract investments from both domestic and international sources for infrastructure development in commercially viable projects. In furtherance with its mandate, NIIF in October this year signed an investment agreement worth $1 billion with a wholly owned unit of the Abu Dhabi Investment Authority (ADIA). As part of the partnership agreement, ADIA will become the first institutional investor in NIIF's Master Fund and a shareholder in National Investment and Infrastructure Ltd, NIIF's investment management company.
NIIF has the mandate to invest in areas such as energy, transportation, housing, water, waste management and other infrastructure-related sectors in India. The corpus of the fund is proposed to be around Rs40,000 crore, with the government investing 49% and the rest to be raised from third-party investors such as sovereign wealth funds, insurance and pension funds, endowments etc.
This update is authored by Clasis Law, Clyde & Co's associated firm in India
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