Government plans 3 more sub-funds under NIIF

NEW DELHI: Buoyed by interest shown by global investors, the government plans three more sector specific sub-funds, including for the development of airports and ports, under the Rs 40,000 crore National Investment and Infrastructure Fund ( NIIF).

There is a proposal for airport development fund, port development fund and one more under the NIIF, sources said.

The government last week announced that it is in the process of setting up two sub-funds one in clean energy fund which will primarily focus on renewable energy, and another fund with focus on highway projects.

The government had set up the Rs 40,000-crore fund in December last year as an investment vehicle for funding commercially viable greenfield, brownfield and stalled projects. It was envisioned as a mother fund with several sectoral feeder funds.

Observing that there were certain challenges with regard to NIIF, Economic Affairs Secretary Shaktikanta Das had last week had said investors were more interested in investing in specific, dedicated, sectoral fund rather than all-purpose, multi-sector umbrella fund.

Subsequently, the government had to restructure and recast the structure and begin with two sectorally dedicated funds namely highway sector and clean energy fund, he had said.

Speaking about investor who are keen to participate in India's sovereign fund, Das said, "We have signed MoUs with Abu Dhabi Investment Authority (ADIA), Qatar Investment Authority (QIA) and Rusnano and we have understanding with the UK treasury and the US treasury. There is a lot of investment appetite."

There are 2-3 proposals and MoUs to be signed and it's just a matter of weeks or one or two months at best activities taking place, he had said.