MUMBAI: The
Asian Infrastructure Investment Bank
(AIIB) will pump $200 million into the National Investment & Infrastructure Fund (
NIIF
). The funding was announced by economic affairs secretary
Subash Chandra Garg
ahead of the third
AIIB
annual meeting which will be attended by Prime Minister Narendra Modi on Tuesday.
“The $200-million investment is in two phases. AIIB will invest $100 million now and another $100 million in the future,” Garg said. Beijing-based AIIB has approved $4.4 billion of investments of which the largest — $1.2 billion — is in India.
The NIIF, a fund of funds set up by India to take interest in infra projects, has a corpus of $6 billion and its largest investor so far is the
Abu Dhabi Investment Authority
(ADIA), which has invested $250 million.
Garg said, “With this kind of a vehicle utilised, it will be possible to multiply the investment in infrastructure to a large multiple.”
Moreover, six projects worth $1.9-billion are in the pipeline, of which $475 million is for the Mumbai Urban Transport Project-III. Three are in Andhra Pradesh — Andhra Pradesh Rural Roads Project, Andhra Pradesh Urban Water Supply and Septage Management Improvement Project and Amaravati Sustainable Capital City Development Project. The remaining investment, besides NIIF and Mumbai Urban Transport Project-III, is the West Bengal Major Irrigation and Flood Management Project.
AIIB VP Danny Alexander said the bank is also interested in the fund of funds as it will lead to a higher inflow into the infra sector.
The sanctioned projects are Madhya Pradesh Rural Connectivity Project ($140 million), Bangalore Metro Rail Project ($335 million), Gujarat Rural Roads (MMGSY) Project ($329 million), Andhra Pradesh 24X7 – Power for All ($160 million), Transmission System Strengthening Project ($100 million) and Morgan Stanley India Infrastructure Fund ($150 million).
Stay informed with the latest Business News on Times of India. Explore updates on International Business, gain insights with Financial Literacy tips, and make use of Financial Calculators. Don’t forget to check the list of Bank Holidays in 2025, including Bank Holidays in January.