Cabinet approved equity infusion of ₹6,000 crore into NIIF

The Union Cabinet has approved the infusion of ₹6,000 crore equity in National Infrastructure Investment Fund’s (NIIF’s) debt platform in the next two years to drive infrastructure creation in the country.

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Key-Points

This move will help the entity raise ₹1.10 lakh crore by 2025 for financing infrastructure projects.

Out of the proposed amount, ₹2,000 crore will be infused in the current financial year.

NIIF Debt Platform is sponsored by National Investment and Infrastructure Fund (NIIF), comprising of Aseem Infrastructure Finance Limited (AIFL) and NIIF Infrastructure Finance Limited (NIIF-IFL).

The NIIF Strategic Opportunities Fund has set up a Debt Platform comprising an NBFC Infra Debt Fund and an NBFC Infra Finance Company.

NIIF through its Strategic Opportunities Fund (‘NIIF SOF’) owns a majority position in both the companies and has already invested ~ Rs.1,899 crore across the Platform.

The Strategic Opportunities Fund (SOF fund) through which the NIIF investment has been made will continue to support the two companies apart from investing in other suitable investment opportunities.