Current Affairs

India gets a $200 million infra-push from AIIB

The Asian Infrastructure Investment Bank will invest $200 million in India’s National Investment and Infrastructure Fund to boost infrastructure projects.
Economic Affairs Secretary Subhash Chandra Garg said The AIIB will invest $100 million in the NIIF’s fund of funds at present, followed by another $100 million later.

India's share of receiving funds from AIIB:

  • India is already the largest borrower from the AIIB with $1.2 billion financing in six projects.
  • In total, the AIIB has invested $4.39 billion in projects and India is the second largest shareholder of the AIIB with an 8.72 per cent stake.

What is AIIB?

  • AIIB is China led multilateral development bank set up in 2016.
  • It is headquartered in Beijing, China.
  • Its purpose is to provide finance to infrastructure development and regional connectivity projects in Asia-Pacific region.
  • It has 83 member nations.
  • India is second largest shareholder in AIIB after China.

What is National Investment and Infrastructure Fund (NIFF)?

  • NIIF was set up in December 2015 to catalyse funding into the country’s infrastructure sector.
  • It has been registered with the Securities and Exchange Board of India as a Category II Alternate Investment Fund.
  • It has been set up as a fund of funds structure with aim to generate risk adjusted returns for its investors alongside promoting infrastructure development.
  • It has targeted corpus of Rs 40,000 crore to be raised over the years — 49% of it will be funded by government at any given point of time.
  • The remaining 51% will be raised from domestic and global investors, including international pension funds, sovereign wealth funds, multilateral/bilateral investors.
  • Its Governing Council is chaired by Finance Minister and has already been set up to act as an advisory council to the NIIF.

India gets a $200 million infra-push from AIIB India gets a $200 million infra-push from AIIB Reviewed by Aman Bhatia on June 26, 2018 Rating: 5

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