Union Minister for Finance and Corporate Affairs Nirmala Sitharaman chaired the sixth meeting of the Governing Council of National Investment and Infrastructure Fund (NIIF) in New Delhi on June 9.

The Governing Council advised NIIF to leverage its sovereign backed design and emphasised the need to professionally showcase its role and performance on the global stage and within the international investor community.

National Investment and Infrastructure Fund (NIIF)

• In the Union Budget 2015-16, the government announced the creation of the National Investment and Infrastructure Fund (NIIF).

• Since infrastructure investments require long-term, patient capital, the government of India anchored the establishment of the NIIF, a fund manager that manages investments in infrastructure and related sectors in India. 

• NIIF is a collaborative investment platform for international and Indian investors, anchored by the government of India, which manages funds with investments in different asset classes and diversified sectors that generate attractive risk-adjusted returns. 

• The objective of NIIF is to maximise economic impact mainly through infrastructure development in commercially viable projects, both greenfield and brownfield, including stalled projects. 

• It could also consider nationally important subjects and other nationally important projects, for example, in manufacturing, if commercially viable. 

• In line with its stated vision NIIF works on all sectors of national importance including ports and logistics, renewable energy, roads, airports, smart meters, digital infrastructure, climate, affordable housing, healthcare, and venture capital/technologies.

• NIIF manages over $4.9 billion of equity capital commitments across its four funds each with a distinct investment strategy committed to support the country’s growth needs.

These four funds are: 

i) NIIF Master Fund is India’s largest domestic infrastructure fund, investing in high-quality businesses and assets across core sectors. Its platforms span transportation (ports, logistics, roads, airports), energy (renewables, smart meters), and digital infrastructure. Through its investments, the fund has created industry leaders and established itself as a partner of choice across diverse sectors.

ii) NIIF Fund of Funds (FoF) is one of the largest India-dedicated fund of funds programme globally. It is focused on building a portfolio of private equity funds across diversified sectors and investment strategies. FoF makes significant commitments, including providing anchor capital, to managers enabling them to attract further institutional capital for their funds. FoF aims to provide its investors a well-diversified exposure to sectors and strategies that benefit from India’s demographics, rising incomes and discretionary spending, and a strong policy framework.

iii) NIIF Strategic Opportunities Fund (SOF) is an India-focused growth equity fund. Established with the objective of providing long-term capital to high-growth future-ready businesses in India, the fund’s strategy is to build a portfolio of large entrepreneur-led or professionally managed domestic champions and unicorns.

iv) The India-Japan Fund (IJF) is a strategic bilateral partnership between the government of India and Japan Bank for International Cooperation, a Japanese public financial institution, both being anchor investors in the Fund. It seeks to invest in India’s environment preservation sector and also to explore opportunities to partner with Japanese companies investing into India.

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