The Department of Economic Affairs has signed an agreement with the NIIF for a Rs20,000 crore contribution to the Fund.
The National Investment and Infrastructure Fund (NIIF) was proposed in Union Budget 2015. In the last week of December, the government has set up this Rs. 40000 crore fund to provide long-term capital for infrastructure projects.
The objective of NIIF is to maximise economic impact through infrastructure development in viable projects both greenfield and brownfield, including stalled projects, mainly in the core infra sector.
NIIF has been structured as a fund of funds and set up as Category II Alternate Investment Fund (AIF) under the Securities and Exchange Board of India (SEBI) Regulations.