Framework for the National Investment and Infrastructure Fund released

Framework for the National Investment and Infrastructure Fund released
 The Ministry of Finance released the framework for the National Investment and Infrastructure Fund (NIIF) on August 20, 2015.5 Key features of the framework include:
 Objective: Maximize economic impact through infrastructure development in commercially viable projects, including stalled projects.
 Structure:
The NIIF will be established as one or more Alternative Investment Funds (AIFs) under SEBI regulations.
The initial corpus of NIIF will be Rs 20,000 crore, which may be raised from time to time, as decided by the Ministry of Finance. Government‟s share in the corpus will be 49% in each entity set up as an AIF.
 Functions: Functions of the NIIF will include: (i) fund-raising, which will include attracting investors to participate as partners in NIIF, (ii) investing and periodic monitoring of investments, and (iii) preparing a shelf of infrastructure projects and providing advisory services.
 Governance: The NIIF will be established as a Trust. It will have a governing council which will oversee the activities of the Trust. The council will consist of government representatives and experts in international finance, economists, and infrastructure professionals. The term and period of appointment of the council will be determined by the government.
 Funding sources:
Government‟s fund share of 49% would be provided as required. Central public sector enterprises could also contribute to the Fund which would be over and above the government‟s share. Domestic pension and provident funds and National Small Savings Fund may also provide funds to the NIIF.
NIIF would solicit equity participation from strategic partners.