The 3rd Meeting of the Governing Council of
the “National Investment and Infrastructure Fund (NIIF)” was held here
today under the Chairmanship of the Union Finance Minister, Shri Arun Jaitley
where in the Finance Minister reviewed the performance of NIIF so far and
action taken by it in order to attract investment from foreign Soverign Wealth
Funds among others in the infrastructure sector in the country.
It was informed that
( i) Strong
investment pipeline with investment opportunities is under consideration in the
roads, ports, aviation and power sectors.
( ii) NIIF
is Considering investments in third party managed funds focused on clean
energy(Green Growth Fund already committed), affordable housing and medium
sized infrastructure companies
The Governing Council
expressed its desire for NIIF to function as a major platform in India, to
leverage and attract overseas long-term investments in various infrastructure
sectors in the Country.
As far as the issue of the
Fund raising is concerned, it was informed that:
(i) Master
Contribution Agreement has been signed between Secretary, Department of
Economic Affairs, Ministry of Finance, Government of India (As the
“Contributor”) and National Investment and Infrastructure Fund Limited (NIIFL)
( As the “ Investment Manager’). The Agreement has been executed to
formalize the commitment of INR 20,000 crores by Government of India to
National Investment and Infrastructure Fund (NIIF).
(ii) Following
this Agreement, steady progress on fund-raising efforts with several international
institutional investors, following-up on MoUs signed by Govt of India has been
made. A first close of NIIF is expected very soon.
(iii) The NIIF
Governance Structure has been developed with technical assistance from DFID, UK
which has been further reviewed and confirmed by Stanford University’s Global
Project Centre under the MOU with the US Treasury.
As far as the Operational
Status of NIIF is concerned, it was informed that :
( i) A
team of twelve staff, including the CEO, National Investment and Infrastructure
Fund Limited is now in place. Further recruitments of high quality staff
through a global search process is underway. Strong international response to
hiring efforts and advertisements for recruitment of expert staff has been
received.
( ii) The
establishment of NIIF’s permanent Delhi office is complete and the
establishment of its head office in Mumbai is currently under refurbishment.
NIIF staff are already operating in a hired space.
Shri Subhash Chandra
Garg, Secretary, Department of Economic Affairs (DEA), Ms Anjuly Chib Duggal,
Secretary, Department of Financial Services (DFS), Shri T.V. Mohandas Pai and
Shri Hemedra Kothari, Members of the Governing Council and other senior
officials were present during the aforesaid meeting.
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DSM/SBS/KA