The Asian Infrastructure Investment Bank (AIIB) board on Sunday cleared a $200-million investment into the National Infrastructure Investment Fund (NIIF) that will help funnel up to $2.4 billion into the infra sector later.
Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank with a mission to improve social and economic outcomes in Asia and beyond.
It is headquartered in Beijing.
It commenced operations in January 2016 and has now grown to 84 approved members from around the world.
By investing in sustainable infrastructure and other productive sectors today, it aims to connect people, services, and markets that over time will impact the lives of billions and build a better future.
The significance of AIIB:
The United Nations has addressed the launch of AIIB as having the potential for “scaling up financing for sustainable development” for the concern of global economic governance. The capital of the bank is $100 billion, equivalent to 2⁄3 of the capital of the Asian Development Bank and about half that of the World Bank.
NIIF was set up in 2015 as an investment vehicle for funding commercially viable greenfield, brownfield and stalled projects in the infrastructure sector. NIIF will 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.