Cabinet approves infusion of Rs 6,000 cr into NIIF debt platform
“The cabinet has taken an important decision for a capital injection of Rs 6,000 crore into the National Investment and Infrastructure Fund over the next two years,” said Prakash Javadekar, Minister of Information and Broadcasting, during a briefing on Wednesday.
Under the NIIF, two companies, Aseem Infrastructure Finance Limited (AIFL) and NIIF Infrastructure Finance Limited (NIIF-IFL) will raise the funds, the Minister said.
While AIFL will finance green land and brownfield projects under construction with less than one year of operation, NIIF-IFL will finance mature operating assets by helping infrastructure investors replace bank financing at high cost by cheaper financing after commissioning, according to an official statement. .
The Centre, whose investment will go into the NIIF Strategic Opportunities Fund, has allocated Rs 2,000 crore for the current financial year, according to the statement.
“However, in view of the unprecedented financial situation and the availability of limited budgetary space due to the prevailing Covid-19, the proposed amount can only be disbursed if there is a will and a demand for lifting. debt,” he said.
NIIF-IFL is a AAA rated company while AIFL was AA rated. The NIIF debt platform will invest Rs 7,000 crore of equity while around Rs 1 lakh crore will be raised in global bond markets to make Rs 1.1 lakh crore available for infrastructure projects in the first tranche, said Javadekar.