In News:

Union Finance Minister chaired the 6th Governing Council (GC) meeting of NIIF in New Delhi. The Council urged NIIF to enhance its global presence, diversify funding sources, and attract international investors by leveraging its sovereign-backed model.

About National Investment and Infrastructure Fund

• A government-anchored investment platform to mobilize long-term institutional capital for infrastructure and strategic sectors.
• Operates as a sovereign wealth fund (SWF)-linked asset manager with independent governance.
• Established: 2015 (Union Budget 2015–16)
• Headquarters: Mumbai
• Nodal Ministry: Ministry of Finance (Department of Economic Affairs)

Functions & Objectives:

• Capital Mobilization: Attract domestic & global institutional investors.
• Investment Management: Deploy equity in commercially viable infrastructure.
• Strategic Partnerships: Collaborate with global sovereign wealth & pension funds.
• Policy Alignment: Support national initiatives like Make in India, green energy, and digital infrastructure.

Key Features:

• Public-Private Structure:
  • 49% Government of India
  • 51% Global and domestic institutional investors (e.g., ADIA, Temasek, CPPIB)
• SEBI-Registered AIF: Category II Alternative Investment Fund (AIF)
• Assets Under Management (AUM): ?30,000+ crore
• Capital Catalysed: ?1.17 lakh crore
• CEO & MD: Sanjiv Aggarwal (since Feb 2024)

Funds under NIIF:

• Master Fund: Core infrastructure (ports, airports, data centres, logistics)
• Private Markets Fund (PMF): Fund of funds model
• India-Japan Fund: Focused on climate action and sustainability
• Strategic Opportunities Fund: Growth equity in strategic sectors

Governing Council (GC) of NIIF:

• Chair: Union Finance Minister (currently Nirmala Sitharaman)
• Members include Finance Secretary, DEA/DFS officials, SBI Chairman, private sector leaders.
• Provides strategic guidance on:
  • Fundraising
  • Global positioning
  • Operationalisation of new funds
  • Annual review of performance

Key Outcomes of the 6th GC Meeting (2024–25):

• Proactive Global Outreach: GC urged NIIF to enhance its global presence and professionalise international engagement.
• Diversified Fundraising: Encouraged exploring multiple funding sources beyond traditional sovereign investors.
• Private Markets Fund II (PMF II): Target corpus: $1 billion; first closing imminent.
• Bilateral Fund with the USA: Under discussion to foster cross-border infrastructure investments.
• Greenfield Investment Success: Master Fund investments directed toward ports, logistics, airports, data centres.
• Strong Global Partnerships: Includes ADIA, Temasek, Ontario Teachers', CPPIB, AIIB, ADB, JBIC, and NDB.
• Annual Meetings: GC to convene once every year to review and guide NIIF’s evolving role.