NIIF is a newly-created $6 billion fund for infrastructure financing in which the government of India holds 49% and the balance is with domestic as well as international investors
Asian Infrastructure Investment Bank (AIIB) is set to pump in $200 million (Rs 1,356 crore) into National Investment and Infrastructure Fund (NIIF) and the first tranche of $100 million has already been approved by the bank's Board on Sunday.
NIIF is a newly-created $6 billion fund for infrastructure financing in which the government of India holds 49% and the balance is with domestic as well as international investors.
Piyush Goyal, Minister of Finance, Corporate Affairs, Railways and Coal said, "I was given the good news that the AIIB Board has approved an investment in the NIIF, the first tranche of $100 million has got approved, which will be followed by a similar tranche."
Prior to the Board meeting, Economic Affairs Secretary Subhash Chandra Garg had said that the AIIB's Board will invest another $100 million in NIIF "in time to come".
According to AIIB's vice president Danny Alexander, the multilateral bank is also interested in the fund of funds as it will lead to higher inflows into the infrastructure sector.
AIIB is holding its third annual meeting in Mumbai wherein over 3,000 delegates are participating from various countries. The three-day event began on Sunday and Prime Minister Narendra Modi will address the gathering tomorrow morning.
With a share of 8.70% in AIIB, India is the second largest stakeholder in the Beijing-based bank. The multilateral development bank aims to support the building of infrastructure in the Asia-Pacific region and has 64 member states while another 22 are prospective members.
Already, the bank has sanctioned $1.2 billion for six infrastructure projects in India which include rural roads, energy, metro rail and Morgan Stanley India Infrastructure Fund.
Another set of projects worth $1.9 billion were under consideration by AIIB's Board including investment into NIIF, Andhra Pradesh Rural Roads Project, Andhra Pradesh Urban Water Supply and Septage Management Improvement Project, Mumbai Metro – Line 4, West Bengal Major Irrigation and Flood Management Project and Amaravati Sustainable Capital City Development Project.
AIIB also has the proposal sent by the Union government to fund $475 million for Mumbai Urban Transport Project - III.
Apart from these projects, the multilateral bank is also interested in projects in the sectors of water and waste management space in India.
BIG INFRA OPPORTUNITY
- $121,40,00,000 - AIIB's India investment
- $439,67,03,205 - Its total investment in all countries
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