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

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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proceeds are to be credited to the existing 'Public Account' under the head NIF and they would remain there until withdrawn/invested for the approved purpose.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 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.