Funding for NIIF
Q. Which of the following statements is/are correct about National Investment and Infrastructure Fund (NIIF)?
1. The authorized corpus of NIIF would be Rs. 20,000 crore.
2. Government's contribution/share in the corpus will be 49% in each entity set up as an Alternate Investment Fund (AIF).- Published on 31 Dec 15a. Only 1
b. Only 2
c. Both
d. None
ANSWER: Both
- The government will invest Rs 20,000 crore into the NIIF from the Budget, with another Rs 20,000 crore expected to come from private investors. The government's share of the NIIF's corpus is envisaged to be under 50%.
- 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 Government directly.
- Rest is open for contribution from others.
- Cash-rich Central Public Sector Enterprises (PSUs) could contribute to the Fund, which would be over and above the Government's 49%.
- Similarly, domestic pension and provident funds and National Small Savings Fund may also provide funds to the NIIF.
- NIIF may utilize the proceeds of monetized land and other assets of PSUs for infrastructure development.
