Cabinet Approves Rs 20,000-Cr Infra Investment Fund: Report
July 30, 2015: The Union Cabinet has approved a National Investment and Infrastructure Fund (NIIF) worth Rs. 20,000 Crore. It will be a kind of sovereign fund and is likely to be used for developing the infrastructure projects.
According to the sources, the cabinet has taken this decision to create the fund in a meeting that was led by Mr. Narendra Modi.
The motive to create this fund is to increase the benefits from infrastructure sector by developing the installed projects and launching the new ones. It is expected to use the fund for funding the projects in manufacturing sector.
"The contribution of the government to the NIIF would enable it to be seen virtually as a sovereign fund and is expected to attract overseas sovereign/quasi-sovereign/multi-lateral/bilateral investors to co-invest in it," sources said.
The initial amount of NIIF would be Rs. 20,000 crore which can be increased further as per the conditions. This fund was announced by Finance Minister Arun Jaitley on the Budget Day.