NIIF’s Debt Platform approved
Part of: GS Prelims and GS-III – Infrastructure
- To drive infrastructure creation in India, the Union Cabinet approved the infusion of ₹6,000 crore equity in National Infrastructure Investment Fund’s (NIIF’s) debt platform in the next two years.
- 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).
- Under NIIF, there are several funds.
- The NIIF’s debt platform will raise debt from the bond market and will provide debt/loan to infrastructure companies.
- It will act as an intermediary between the bond market and the infrastructure projects.
- Infrastructure projects do not directly raise money from the bond markets because they lack credibility in such markets.
- The NIIF and its platforms’ ratings are good because government has invested 49% equity into it.
Do you know?
- Any fund can raise money through two routes – Equity and Debt and can then invest this money into Equity and Debt again.