NIIF in talks with Asian Infra and Investment Bank for funding

NEW DELHI: After receiving a funding boost from Abu Dhabi Investment Authority, the National Investment and Infrastructure Fund (NIIF) is in talks with the newly created Asian Infrastructure and Investment Bank (AIIB) for funding support.

“We are in talks with the Indian government... A final decision will be taken in the first quarter next financial year,” AIIB vice-president Danny Alexander told ET.

India is the second largest shareholder in the multilateral bank that plans to hold its board of governors meeting in Mumbai on June 25-26.


The NIIF recently secured a $1 billion commitment from ADIA. Asked if the investment would flow into the master fund, Alexander declined to give details. He said it was in discussion stage and the final call would be taken by the board.

The AIIB is likely to consider a commitment of $200 million. Total lending to India so far is pegged at $1.07 bn, including Morgan Stanley Infastructure Fund. Asked if the AIIB would be open to fund projects in the North East, he said projects are examined independently on the parameters laid down by the bank.

China, which mooted the idea of AIIB, holds 20.06% stake, while India hold 7.5%. In the past, there have been reports of China objecting to funding by some multilateral agencies to projects in Arunachal.