The central government is all set to roll out the National Infrastructure Development Fund (NIFF) with an initial budget of Rs. 40,000 crore. However, according to one unnamed government official two large overseas funds are expected to be signed with a commitment of at least $1 billion each month.
Economic affairs secretary Mr. Shaktikanta Das revealed that this fund will be actively used in a series of infrastructure project specifically in the transportation sector. He also said that the government is going to provide Rs. 20,000 crore from the initial budget and it will target from the rest Rs. 20,000 crore to be brought in as soon as possible. Talks are however on with several topnotch companies to provide funds from Singapore, Abu Dhabi, Qatar. Even Russian Direct Investment Fund and Rusnano have had talks with the Narendra Modi led government.
The government earlier the day announced that it is going to register NIFF with the Securities and Exchange Board of India (SEBI). This fund is seen to lessen the pressure on banks to ease them from severe bad loan crises. Banks also face the pressure on dealing with asset liability mismatches because typically their deposits are for one to two years wherein lending for transportation sector usually is for 20 years and above. The main focus is to revive the economy and facilitate a strong growth. The India Infrastructure Finance Company has been named tentatively as the investment advisor to evaluate projects and hiring process is on for the CEO with a market based salary as well. However Mr. Das stated that the CEO has to be an Indian citizen.