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proceeds are to be credited to the existing 'Public Account' under the head NIF and they would remain there until withdrawn/invested for the approved purpose.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