The Asian Infrastructure Investment Bank will invest $200 million in India’s National Investment and Infrastructure Fund to boost infrastructure projects.
Economic Affairs Secretary Subhash Chandra Garg said The AIIB will invest $100 million in the NIIF’s fund of funds at present, followed by another $100 million later.
India's share of receiving funds from AIIB:
- India is already the largest borrower from the AIIB with $1.2 billion financing in six projects.
- In total, the AIIB has invested $4.39 billion in projects and India is the second largest shareholder of the AIIB with an 8.72 per cent stake.
What is AIIB?
- AIIB is China led multilateral development bank set up in 2016.
- It is headquartered in Beijing, China.
- Its purpose is to provide finance to infrastructure development and regional connectivity projects in Asia-Pacific region.
- It has 83 member nations.
- India is second largest shareholder in AIIB after China.
What is National Investment and Infrastructure Fund (NIFF)?
- NIIF was set up in December 2015 to catalyse funding into the country’s infrastructure sector.
- It has been registered with the Securities and Exchange Board of India as a Category II Alternate Investment Fund.
- It has been set up as a fund of funds structure with aim to generate risk adjusted returns for its investors alongside promoting infrastructure development.
- It has targeted corpus of Rs 40,000 crore to be raised over the years — 49% of it will be funded by government at any given point of time.
- The remaining 51% will be raised from domestic and global investors, including international pension funds, sovereign wealth funds, multilateral/bilateral investors.
- Its Governing Council is chaired by Finance Minister and has already been set up to act as an advisory council to the NIIF.
