Lok Sabha Question No. 3642 (UNSTARRED), answered on 2020-03-16
Subject: National Infrastructure Investment Fund
Ministry: FINANCE
Asked by: Rahul Ramesh Shewale

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO. 3642

TO BE ANSWERED ON March 16, 2020 / PHALGUNA 26, 1941 (Saka)

## 'NATIONAL INFRASTRUCTURE INVESTMENT FUND'

## 3642: SHRI RAHUL RAMESH SHEWALE:

Will the Minister of FINANCE be pleased to state:

- (a) the  salient  features  of  National  Infrastructure  Investment  Fund  (NIIF)  along  with  the present corpus of this Fund;
- (b)   the number of infrastructure projects financed by NIIF across the country along with the present status of such projects;
- (c)    whether the Memorandum of Understanding signed between India and UAE to mobilize long-term investment into NIIF has achieved the desired results;
- (d)      if so, the details thereof and if not, the reasons therefor; and
- (e)     the other steps taken by the Government to attract long-term investment into NIIF and to ensure adequate funding to infrastructure projects across the country?

## ANSWER

## MINISTER OF STATE (FINANCE) (SHRI ANURAG SINGH THAKUR)

(a): National  Infrastructure  and  Investment  Fund  (NIIF)  has  been  created  with  the objective of attracting equity investments from both domestic and international sources for  infrastructure  development  in  commercially  viable  projects,  both  greenfield  and brownfield,  including  stalled  projects.    It  has  been  registered  as  a  Category  II  Alternate Investment Funds (AIF) under SEBI Regulations.   NIIF Trustee Ltd., a 100% Govt. Company is the Trustee of NIIF and NIIF Ltd., having GOI equity of 49% at present is the Investment Manager Company of NIIF.   As on date, three funds i.e. Master Fund, NIIF Fund of Funds-I & NIIF-II (Strategic Opportunities Fund) have been established under the NIIF platform and registered with SEBI as Category II Alternative Investment Funds.  The proposed corpus of NIIF  is  Rs.  40,000  Crores  (around  USD 6  Billion).  Government's contribution to the Fund shall  be  49%  of  the  total  commitment.  Currently,  NIIF  has  INR  28,060  crores  as  capital commitment and an additional commitment of INR 20,429 crores in co-investment rights to  investors.  In  addition,  NIIF  has  tied  up  with  operating  partners  who  invest  additional capital at the operating company level.

(b): NIIF  Funds  have  directly  and  indirectly  provided  equity  and  debt  financing  to  18 and 88 projects respectively across the country. The projects are in various sectors such as renewable energy, ports and logistics, mid-income and affordable housing, airports, etc. and in different stages of development from greenfield to fully operational.   One of these is a greenfield Free Trade Warehousing Zone in JNPT port in Mumbai being constructed by NIIF's platform company HIPL. (c) & (d): Pursuant  to  the  MoU  between  India  and  UAE  to  mobilize  long  term investment into NIIF, Abu Dhabi Investment Authority (ADIA) committed to invest USD 1 billion  equivalent  through  NIIF.      NIIF  has  also  developed  further  investments  with  UAE companies accounting for an additional INR 4,840 crore (aporox) commitments. (e): Government  of  India  has  undertaken  measures  to  attract  various  classes  of investors into the infrastructure projects across the country.  New PPP models such as Toll Operate  Transfer  (TOT),  Hybrid  Annuity  Model  (HAM)  etc.  have  been  implemented  for investors  who  are  active  in  asset  creation  or  in  O&M  of  projects.      New  financing instruments such as Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) have been introduced to attract investments from large institutional funds and global investors. A National Infrastructure Pipeline (NIP) has also been launched which is  expected  provide  a  clear  pipeline  of  investible  opportunities  over  next  5  years  for

- domestic and international investors.

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