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National Investment Fund (NIF) and National Investment and Infrastructure Fund (NIIF)

February 24, 2021 by Bhushan Leave a Comment Last Updated February 24, 2021

Table of Contents hide
1 National Investment Fund (NIF)
2 National Investment and Infrastructure Fund (NIIF)

National Investment Fund (NIF)

  • National Investment Fund (NIF) was established to receive disinvestment proceeds of central public sector enterprises and to invest the same to generate earnings without depleting the corpus.
  • The earnings of the Fund are to be used for selected Central social welfare Schemes & capital investment requirements of profitable and revivable PSUs.
  • This fund was kept outside the consolidated fund of India.
  • The fund became operational in 2005.
  • Entire disinvestment proceeds are to be credited to the existing 'Public Account' under the head NIF and they would remain there until withdrawn/invested for the approved purpose.
  • The allocations out of the NIF will be decided in the annual Government Budget.

National Investment and Infrastructure Fund (NIIF)

  • National Investment and Infrastructure Fund is India's first infrastructure-specific investment fund.
  • This is different from the National Investment Fund.
  • The objective of NIIF would be to maximize economic impact mainly through infrastructure development in commercially viable projects, both greenfield and brownfield, including stalled projects.
  • The corpus of NIIF is Rs. 40,000 Crores.
  • The government can provide up to 20000 crores per annum into these funds.
  • The 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 the Government directly.
  • Rest is open for contribution from others.

Reference - https://www.dipam.gov.in/dipam/national-investment-fund

Filed Under: UPSC Tagged With: National Investment and Infrastructure Fund (NIIF), National Investment Fund (NIF)

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