How is FM Sitharaman Praising NIIF's Role in Capital Mobilization for Infrastructure?

New Delhi, June 9 (NationPress) Union Finance Minister Nirmala Sitharaman presided over the sixth meeting of the Governing Council (GC) of the National Investment and Infrastructure Fund (NIIF) today.

The GC received a comprehensive overview of NIIF’s strategic approach, advancements, investment status, sectoral emphasis, performance metrics, and future direction across its four active funds: the Master Fund for infrastructure; the Private Markets Fund; the Climate and Sustainability Fund along with the India-Japan Fund; and the Strategic Opportunities Fund focusing on growth equity.

In acknowledging NIIF’s increasing contribution towards mobilizing capital for infrastructure and other crucial sectors of the Indian economy, the GC commended NIIF’s accomplishments and noted the significant rise in its Assets Under Management, which have surpassed Rs 30,000 crore while facilitating capital of Rs 11,700 crore.

The council lauded NIIF’s development as a sovereign-linked asset manager and recognized its efforts over the years to forge robust partnerships with esteemed investors, including notable sovereign wealth funds like Abu Dhabi Investment Authority (ADIA) and Temasek.

It also acknowledged collaborations with pension funds such as AustralianSuper, Ontario Teachers’ Pension Plan, and Canada Pension Plan Investment Board (CPPIB); Multilateral Development Banks like Asian Infrastructure Investment Bank (AIIB), Asian Development Bank (ADB), and New Development Bank (NDB); along with key government partners like the Japan Bank for International Cooperation (JBIC).

The GC took note that both the Master Fund and Private Markets Fund are fully committed, with part of the investments from the Master Fund directed towards developing greenfield assets in sectors such as ports and logistics, airports, and data centers.

Progress on NIIF’s forthcoming Private Markets Fund II, targeting a corpus of $1 billion, was acknowledged, along with the successful onboarding of private investors as per previous GC guidance, with its first closing on the horizon.

The council was informed about a proposed bilateral fund currently under negotiation with the USA. Guidance was also offered on strategies for successful fundraising, timely operationalization, and efficient deployment.

The GC advised NIIF to capitalize on its sovereign-backed structure and highlighted the necessity for a professional showcase of its role and achievements on the global stage and within the international investment community.