Cabinet Approves ₹30,000 Crore Boost for National Infrastructure Fund

The Union Cabinet has approved an additional investment of ₹30,000 crore by the Government of India in the National Investment and Infrastructure Fund (NIIF), the government announced on Monday. The decision, taken last week, will be used to support new funds managed by NIIF.

This brings the government's total commitment in NIIF to ₹60,000 crore. NIIF is India's sovereign-anchored fund, with the government holding a 49% stake. It currently manages capital commitments of about ₹40,000 crore across its various funds and investment strategies.

“We are grateful for this allocation of ₹30,000 crore, which is a strong reaffirmation of Government support to NIIF and reinforces the catalytic capital model that has defined NIIF since inception,” said Sanjiv Aggarwal, Managing Director & CEO of NIIF.

According to a government release, the additional allocation will help NIIF raise larger funds, attract global investors, and deepen its presence in key sectors. The funds will primarily be used to set up NIIF Infrastructure Fund II, the successor to its first flagship infrastructure fund. This new fund is proposed to have a target corpus of nearly ₹30,000 crore and will focus on investments in transportation, energy, digital infrastructure, urban infrastructure, and e-mobility.

The allocation will also support NIIF’s new fund strategies and upcoming bilateral and strategic funds. “Over the past decade, GoI’s anchor commitment has enabled us to build a very strong institutional investor base, spanning leading sovereign wealth funds, pension funds, multilateral and bilateral institutions, and domestic financial institutions,” Aggarwal added.