Atmanirbhar Bharat 3.0: Cabinet approves Rs 6,000 cr equity infusion in NIIF debt platform

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Updated: November 25, 2020 4:08 PM

The cabinet said that NIIF will take all necessary steps to use the equity investments from domestic and global pension funds, and sovereign wealth funds expeditiously.

Infrastructure Budget 2021 Expectations, Budget 2021 Expectations for InfrastructureOf the total investment in infrastructure in the country, almost 40 per cent comes from the states.

Prime Minister Narendra Modi-led Union Cabinet today approved equity infusion of Rs 6,000 crores in Debt Platform of National Investment and Infrastructure Fund (NIIF). Finance Minister Nirmala Sitharaman had earlier proposed this investment while announcing the Atmanirbhar Bharat 3.0 package. The cabinet further said that NIIF will take all necessary steps to use the equity investments from domestic and global pension funds, and sovereign wealth funds expeditiously over two financial years — 2020-21 and 2021-22. The NIIF Strategic Opportunities Fund has set up a Debt Platform comprising an NBFC Infra Debt Fund and an NBFC Infra Finance Company. 

With the fresh infusion of equity by the government, besides the equity already infused by NIIF Strategic Opportunities Fund and the private sector, the debt platform is expected to raise enough resources to extend debt support of Rs 1.1 lakh crore to projects by 2025.

Also Read | Flight of capital: Indian market receives record foreign investment in November; equities skyrocket

In another major announcement, the cabinet also approved the FDI proposal for acquisition of 12.32 per cent of the equity share capital of M/s ATC Telecom Infrastructure Private Limited by M/s ATC Asia Pacific PTE Limited, as a result of the exercise of a put option by M/s Tata Tele Services Limited (TTSL) and Tata Sons Private Limited (TSPL). 

The move is expected to lead to a foreign direct investment inflow of Rs 2,480.92 crore and therefore, the cumulative FDI of M/s ATC Asia Pacific PTE Limited into ATC Telecom Infrastructure Private Limited (ATC India) will be Rs 5,417.2 crore in financial years 2018-19 to 2020-21. The company has existing FDI approval up to 86.36 per cent, and with this approval, it will rise to 98.68 per cent. It is to be noted that FDI up to 100 per cent is allowed in telecom services sector, out of which, 49 per cent under automatic route and beyond 49 per cent through government route is allowed.

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