• 9964432222
  • Mail Us
  • Appointment
  • Locate Us
  • Chat Now
  • Courses
  • Login
  • Register
Manifest IAS
JournalsOfIndia
Manifest Learning Academy
  • Home
  • SNIPPETSfor Prelims
  • ARTICLESfor Mains
  • BROWSEBY SOURCE
  • DOWNLOADS
No Result
View All Result
  • Home
  • SNIPPETSfor Prelims
  • ARTICLESfor Mains
  • BROWSEBY SOURCE
  • DOWNLOADS
No Result
View All Result
JournalsOfIndia
No Result
View All Result
Home Economy

National Investment and Infrastructure Fund & its Infrastructure debt financing platform 

November 26, 2020
in Economy
Reading Time: 4 mins read
0
National Investment and Infrastructure Fund & its Infrastructure debt financing platform 
387
VIEWS
Share on WhatsAppShare on TelegramShare on Facebook
image_pdfMake PDF

In news 

The Union Cabinet approves Capital infusion into NIIF Infrastructure Debt Financing Platform 

NIIFs Infrastructure Debt Financing Platform 

  • Union Cabinet has given its approval to the proposal for equity infusion by Government of Rs 6000 crores in NIIF Debt Platform sponsored by National Investment and Infrastructure Fund (NIIF), comprising of Aseem Infrastructure Finance Limited (AIFL) and NIIF Infrastructure Finance Limited (NIIF-IFL), subject to the following conditions:
    • That only Rs.2,000 crore would be allocated during the current year 2020-21. However, in view of the unprecedented financial situation and availability of limited fiscal space due to the prevailing COVID-19, the proposed amount may be disbursed only if there is readiness and demand for debt raising.
    • NIIF will take all necessary steps to use the equity investments from Domestic and Global pension funds and sovereign wealth funds expeditiously.
  • The NIIFStrategic Opportunities Fund has set up a Debt Platform comprising an NBFC Infra Debt Fund and an NBFC Infra Finance Company. 
  • NIIF through its Strategic Opportunities Fund (‘NIIF SOF’) owns a majority position in both the companies and has already invested ~ Rs.1,899 crore across the Platform. 
  • The Strategic Opportunities Fund (SOF fund) through which the NIIF investment has been made will continue to support the two companies apart from investing in other suitable investment opportunities.  
  • The current proposal seeks GOI investment directly to further scale the potential and impact of the two entities in the infrastructure debt financing space. This will also support the efforts of the platform to raise international equity. 

Implementation strategy and targets:

  • The strategy is AIFL will predominantly focus on under construction/greenfield / brownfield assets with less than one year of operations. NIIF Infrastructure Debt Financing Platform will have its own in-house appraisal system, which will enable faster deployment of funds.
  • NIIF IFL (NBFC-IDF) will operate as a take-out vehicle for mature operating assets. It will help infrastructure investors in replacing high cost bank finance with cheaper IDF finance post-commissioning. 
  • Over the next 5 years (NIP Plan Period), NIIF Infrastructure Debt Financing Platform can potentially support the construction of infrastructure projects worth ~ Rs.100,000 crore.
  • The Platform will also need to raise external long-term equity capital as well as debt from both domestic and international markets over the next few years which could result in a multiplier of 14 -18 times of the proposed capital infusion of up to Rs. 6,000 crore from GOI.
  • NIIF will make strong efforts to use the equity investments by Government to catalyse equity investments by Domestic and Global Pension, Insurance and Sovereign Wealth Funds in the NIIF Infrastructure Debt Financing Platform

About National Investment and Infrastructure Fund(NIIF)

  • It is a collaborative investment platform focused on Indian infrastructure. 
  • It invests in operating assets, greenfield projects and anchor third-party managed funds in core infrastructure and related segments.
  • The Governing Council of NIIF is chaired by the Finance Minister of India. It also comprises eminent members from the business, investment and policy sectors.
  • The Council meets annually and provides overall guidance on overall NIIF strategy.
  • Invest in operating assets, greenfield projects and anchor third party managed funds in core infrastructure and related segments.

Funds under NIIF

Master Fund

  • Primarily investing in operating assets in core infrastructure sectors such as roads, ports, airports, power etc.
  • Invests in mature businesses with long-term track record, often operating in regulated environments or under concession or long-term agreements.
  • These businesses are expected to provide predictable inflation-hedged and stable cash flows.

Fund of Funds

  • Invests through India-focused private equity fund managers who have a strong track record of managing investments successfully.
  • May also selectively form joint ventures with fund managers.
  • Invests in social infrastructure sectors services such as healthcare, education, digital as well as financial services, logistics and consumer services.

Strategic Fund

  • Aimed at growth and development stage investments in projects/ companies in a broad range of sectors that are of economic and commercial importance.
  • Primarily investing in operating assets in core infrastructure sectors such as roads, ports, airports, power etc.
image_pdfMake PDF
Source: Live Mint
Tags: Prelims

Related Posts

National handloom Day

National handloom Day

August 8, 2022
RBI’s seven Surveys on Indian Economy

RBI’s seven Surveys on Indian Economy

August 8, 2022
Fifth anniversary of the Centre for Trade and Investment Law (CTIL)

Fifth anniversary of the Centre for Trade and Investment Law (CTIL)

August 6, 2022
RBI hikes Repo Rate by another 50 basis points

RBI hikes Repo Rate by another 50 basis points

August 6, 2022
Central Consumer Protection Authority( CCPA)

Central Consumer Protection Authority( CCPA)

August 5, 2022
Gati Shakti University

Gati Shakti University

August 4, 2022
Slump of Indian Rupee

Slump of Indian Rupee

August 3, 2022
Patent Agents

Patent Agents

August 2, 2022
Revamped Distribution Sector Scheme of Power sector

Revamped Distribution Sector Scheme of Power sector

August 1, 2022
India International Bullion Exchange

India International Bullion Exchange

July 30, 2022
Please login to join discussion

Our Offline Classroom Student

PRELIMS 2021 POLITY QUESTIONS ANALYSED

https://youtu.be/5q8hBcRGhAs

PRELIMS 2021 HISTORY QUESTIONS ANALYSED

https://youtu.be/v0SIZ7SUybg

CONGRATULATIONS TO 2021 TOPPERS !!!

Rank 171 Kumar Shivashish
Rank 250 Sahithya
Rank 263 Sumit Kumar Thakur
Rank 311 Deepak Ramachandra Shet
Rank 455 Ravinandan B M

August 2022
MTWTFSS
1234567
891011121314
15161718192021
22232425262728
293031 
« Jul    

Browse by Category

  • Agriculture
  • Disaster Management
  • Economy
  • Environment
  • Ethics
  • Foreign Affairs
  • Geography
  • Governance
  • History
  • Law & Policy
  • Opinion
  • People in News
  • Places in News
  • Science & Tech
  • Security
  • Society
  • Sports
  • Uncategorized

Browse by Tags

AIR BBC Business Standard CNN Deccan Herald DownToEarth Down to Earth DTE Economic Times ET GS-1 GS-2 GS-3 GS-4 Hindustan Times IE India & the world Indian express India today Indiatoday Kurukshetra LiveMint Mains News Newspaper News Paper PIB PIB & The Hindu pre Prelims PRS India RSTV Science Reporter Survey The Hindu The Hindustan Times The India Express The Indian Express The New Indian Express Times of India TOI TOPPERS UNDP website Wikipedia Yojana
JournalsOfIndia

Our vision is to orient the readers to grasp the facts objectively and analyse critically. In the rush of reaching first to the readers, the websites miss the balanced opinion, which is the need of the hour. We aim to reach the readers with more crispness, preciseness and relevance. We bring the articles in UPSC way for the civil services aspirants and the Wisest Way for general readers.

Categories

  • Agriculture
  • Disaster Management
  • Economy
  • Environment
  • Ethics
  • Foreign Affairs
  • Geography
  • Governance
  • History
  • Law & Policy
  • Opinion
  • People in News
  • Places in News
  • Science & Tech
  • Security
  • Society
  • Sports
  • Uncategorized

Browse by Tag

AIR BBC Business Standard CNN Deccan Herald DownToEarth Down to Earth DTE Economic Times ET GS-1 GS-2 GS-3 GS-4 Hindustan Times IE India & the world Indian express India today Indiatoday Kurukshetra LiveMint Mains News Newspaper News Paper PIB PIB & The Hindu pre Prelims PRS India RSTV Science Reporter Survey The Hindu The Hindustan Times The India Express The Indian Express The New Indian Express Times of India TOI TOPPERS UNDP website Wikipedia Yojana

Newsletter

The most important UPSC news and events of the day.

Get Journals daily newsletter on your inbox.

© 2020 JournalsOfIndia - A free initiative by Manifest Team.

  • Login
  • Sign Up
  • Home
  • SNIPPETS
  • ARTICLES
  • BROWSE
  • DOWNLOADS
No Result
View All Result

© 2020 JournalsOfIndia - A free initiative by Manifest Team.

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In