NIIF (Syllabus: GS Paper 3 – Economy)

Context: India’s National Investment and Infrastructure Fund Ltd (NIIF) and private equity firm Actis Llp are among four contenders vying to acquire Macquarie Asset Management’s Green Investment Group platform Vibrant Energy.

Key Points

• India’s green energy space has witnessed tremendous interest, given the country’s ever-increasing demand for power.
• India recently set a new record, with power demand reaching 239.9GW, exceeding India’s power sector planning body, the Central Electricity Authority’s (CEA) projections of 230GW. 
• India has an installed renewable energy capacity of 172GW, with an additional 128GW either under development or have been bid out.

National Investment and Infrastructure Fund (NIIF)

• About: It is a quasi-sovereign wealth fund (Category-II Alternative Investment Fund) to attract investment from both domestic and international sources for infrastructure projects in various sectors such as transportation, energy, urban development, and more.
• Set up: In December 2015 as a Category-II Alternate Investment Fund.
• Objective: Creating this organisation was to catalyse capital into the country and support its growth needs across sectors of importance.

oInvesting in core infrastructure sectors, such as transportation, energy and digital.

oIt is a collaborative investment platform for international and Indian investors.

• NIIF is sponsored and anchored by the Government of India, which holds a 49% interest in it and other stakes by the private firms.