NEW DELHI: National Investment and Infrastructure Fund (NIIF) on Monday announced a $3-billion platform in partnership with Dubai-based ports operator DP World to invest in ports, terminals and logistics. This is the first investment by NIIF, a sort of sovereign fund set up by the government.
“The platform will invest in opportunities in the ports sector, and beyond sea ports into areas such as river ports and transportation, freight corridors, portled special economic zones, inland container terminals, and logistics infrastructure including cold storage,” the finance ministry said in a statement.
DP World in a statement said the platform will invest up to $3 billion, or about Rs 19,170 crore, of equity to acquire assets and develop projects in ports, terminals, transportation and logistics businesses in India.
In May last year, DP World had announced $1 billion, or about Rs 6,390 crore, investment in India to tap into opportunities in infrastructure space. This was in addition to more than $1 billion investment it already made in the country.
NIIF, in which the government has 49% stake, has a proposed corpus of Rs 40,000 crore.
“Following its first close in October 2017 on the fund-raising side, and now with its first investment, NIIF is making visible progress,” department of economic affairs secretary Subhash Chandra Garg said.
A subsidiary of the Abu Dhabi Investment Authority (ADIA), one of the largest sovereign wealth fund in the world, and four domestic institutional investors (DIIs) — HDFC Group, ICICI Bank, Kotak Mahindra Life and Axis Bank — invested in the NIIF Master Fund on October 16, 2017.
NIIF has a mandate to solicit equity participation from strategic anchor partners including overseas sovereign, quasi-sovereign, multilateral and bilateral investors.
It will establish three alternative investment funds (AIFs) under Sebi Regulations. An India-UK Green Growth Equity Fund (GGEF) is also being set up under the fund of funds vertical of NIIF, and will have anchor commitments of £120 million, or about Rs 1,068 crore, each from the governments of India (through NIIF) and the UK.