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.
Key takeaways
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.
