NIIF MAKES EQUITY FUNDING OF LESS THAN ₹5K CR IN 5 YRS
NEW DELHI: The National Investment and Infrastructure Fund (NIIF) in its five years of existence has made an equity investment of less than ₹5,000 crore in infrastructure projects, officials said.
The ₹40,000-crore NIIF was set up in December 2015 as an institution for enhancing infrastructure financing by investing in greenfield (new), brownfield (existing) and stalled projects.
According to officials, NIIF has made an equity investment of ₹4,689 crore, while the co-investment by its partners stood at about ₹7,053 crore at the end of September 2020.
The quasi-sovereign wealth fund’s total equity investment along with partners stood at ₹11,742 crore as of September 2020.
At the same time, the longterm debt investment was at ₹7,935 crore, taking aggregate investment to the tune of ₹19,677 crore.
Set up as Category II Alternative Investment Fund (AIF), the NIIF currently manages three funds with distinct strategies— Master Fund, Fund of Funds and Strategic Opportunities Fund. NIIF’s total assets under management (AUM) is at over $4.4 billion across the three funds, as per the latest factsheet provided by the NIIF.
As far as the road sector is concerned, NIIF has taken the brownfield route to enter the segment following acquisition of Essel Devanahalli Tollway and Essel Dichpally Tollway last year. The acquisition was done through NIIF Master Fund.
In November 2020, the Union Cabinet approved proposal for an equity infusion of ₹6,000 crore by the government in NIIF Debt Platform sponsored by the National Investment and Infrastructure Fund (NIIF), comprising of Aseem Infrastructure Finance Ltd (AIFL) and NIIF Infrastructure Finance Ltd (NIIF-IFL).