NIIF

  • November 13, 2020
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
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Subject : Economy

Context : Government has decided to  infuse Rs 6000 cr in NIIF debt platform to increase infrastructure funding.

Concept :

National Investment and Infrastructure Fund (NIIF):

  • NIIF is India’s first sovereign wealth fund set up by the Government of India in 2015.
  • It is an investor-owned fund manager, anchored by the Government of India (GoI) in collaboration with leading global and domestic institutional investors.
  • NIIF’s mandate includes investing in areas such as energy, transportation, housing, water, waste management and other infrastructure-related sectors in India.

Functioning:

  • It is being operationalized by establishing three Alternative Investment Funds (AIFs) under the SEBI Regulations.
  • The proposed corpus of NIIF is Rs. 40,000 Crores funded of 49% from Government of India.
  • Rest from strategic anchor partners (Overseas sovereign/quasi-sovereign/multilateral/bilateral investors).

NIIF and Three Funds:

  • NIIF currently manages three funds each with its distinctive investment mandate.
  • Master Fund: A fund focused on creating scalable sectoral platforms in core infrastructure and in collaboration with strong and reputed operating and financial partners.
  • Fund of Funds: A fund focused on anchoring and investing incredible and reputed third-party managers with a strong track record across diversified sectors within infrastructure services and allied sectors.
  • Strategic Investment Fund: A fund focused on investing in strategic assets and projects with longer-term horizon across various stages of development.

ADDITIONAL FACTS :

  • India’s retail inflation remained above 7% in October for a second straight month as vegetable prices stayed at elevated levels, worrying policymakers, who are struggling to pull Asia’s third-largest economy from a deep slump.
  • October’s retail inflation of 7.61% was higher than the forecast of 7.3% in a Reuters’ poll of economists. It was 7.27% in September, official data showed on Thursday.
  • Retail inflation has remained above 4%, the middle-point of the Reserve Bank of India’s (RBI) target of 2%-6%, for more than a year, giving it little room to cut interest rates.
  • Rating agency Moody’s Investors Service has revised upward its forecast for India’s GDP for calendar year 2020 to an 8.9% contraction from its earlier projection for a contraction of 9.6%
  • Overall, G-20 economies were expected to collectively contract 3.8% in 2020, followed by 4.9% growth in 2021 and 3.8% growth in 2022, Moody’s said.
  • Kerala State Election Commission has issued Notification for Local Body Elections. For the first time , Postal Ballot is to be issued to enable COVID 19 patients and persons in quarantine to cast their votes.
economy NIIF