Which of the following statements is are correct about National Investment and Infrastructure Fund N...........

Economic and Social Issues Social Infrastructure

Off late, the National Investment and Infrastructure Fund (NIIF) has been adopting various approaches to mobilize resources for funding infrastructure projects.National Investment and Infrastructure Fund (NIIF) is India’s first sovereign wealth fund that was set up by the Government of India in February 2015.The objective behind creating this fund was to maximize economic impact mainly through infrastructure investment in commercially viable projects, both Greenfield and Brownfield. NIIF was approved in August 2015 by the Department of Economic Affairs. First meeting of its governing council was held in December 2015 further to which it was registered with SEBI as Category II Alternative Investment Fund.As of September 2018, the NIIF manages funds of over US$ 3.4 billion.

Which of the following statements is/are correct about National Investment and Infrastructure Fund (NIIF)?

i. The authorized corpus of NIIF would be Rs. 20,000 crore.

ii. Government's contribution/share in the corpus will be 49% in each entity set up as an Alternate Investment Fund (AIF).

iii NIIF is India’s second sovereign wealth fund that seeks to create long-term value for domestic and international investors seeking investment only in Stalled infrastructure projects.

Select the correct answer using the code given below

only i

both i and ii

both ii and iii

all of the above

none of these

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Explanation:

The government will invest Rs 20,000 crore into the NIIF from the Budget, with another Rs 20,000 crore expected to come from private investors. The government's share of the NIIF's corpus is envisaged to be under 50%.

- Government's contribution/share in the corpus will be 49% in each entity set up as an Alternate Investment Fund (AIF) and will neither be increased beyond, nor allowed to fall below 49%.

- The whole of 49% would be contributed by Government directly.

- Rest is open for contribution from others.

- Cash-rich Central Public Sector Enterprises (PSUs) could contribute to the Fund, which would be over and above the Government's 49%.

- Similarly, domestic pension and provident funds and National Small Savings Fund may also provide funds to the NIIF.

- NIIF may utilize the proceeds of monetized land and other assets of PSUs for infrastructure development.