The Union Cabinet chaired by the Prime Minister Narendra Modi gave its ex-post facto approval for a Memorandum of Understanding (MoU) between India and the United Arab Emirates (UAE) signed on 11th February, 2016 to mobilise long term investment into the National Investment and Infrastructure Fund (NIIF).
- The objective of NIIF is to maximize economic impact mainly through infrastructure development in commercially viable projects, both greenfield and brownfield, including stalled projects; NIIF would solicit equity participation from strategic anchor partners.
- The MoU will help establish a transparent and high-level framework and collaboration platform under which both countries intend to explore ways to facilitate and expand the participation of UAE’s investment institutions in appropriate infrastructure projects and institutions in India including NIIF, in a manner consistent with the established investment criteria and standards in a mutually agreed manner.
- A joint working group comprising of the concerned representatives of both parties would take forward cooperation under this MOU and to discuss and agree the terms, principles and criteria jointly.
Did You Know?
- NIIF is a fund created by the Govt of India for enhancing infrastructure financing in the country.
- The mandate of the NIIF includes investment in commercially viable and stalled projects.
- Corpus – Rs. 40000 crore; govt and other investors would contribute Rs. 20000 crore each.
- NIIF would be a fund of funds, so there will be multiple alternate investment funds underneath such as stressed-assets fund, renewable energy fund, etc.
