NIIF gets boost, initial corpus to be Rs 40k crore

By: | Published: December 3, 2015 2:35 AM

While the Centre would hold a maximum 49% stake in the NIIF, it would give stakes to overseas sovereign, quasi-sovereign, multilateral and bilateral investors to co-invest in it as anchor investors.

The initial corpus of the National Investment and Infrastructure Fund (NIIF) is expected to be R40,000 crore, double an earlier estimate, the government on Wednesday said, inviting applications for the post of the fund’s CEO.

“The fund is set-up as a fund of funds with a proposed series of funds,” the finance ministry said in a statement.

Earlier this year, the Cabinet had approved the creation of the NIIF with an initial corpus of R20,000 crore for the development of commercially viable projects, both greenfield and brownfield, including stalled projects. The NIIF is being set up in a tax-efficient manner as a Category II alternate investment fund, which will be eligible for a pass-through status under the Income Tax Act, to attract investors.

Inviting application for the CEO’s post, the finance ministry said, “The ideal candidate should have senior management experience of at least 15 years, of which at least five years should be in area of fund management/financial sector.” Interested candidates would have to apply within 15 days. The CEO’s responsibilities would include the initial set up activities of the fund, putting appropriate investment and other relevant policies in place, fund raising, coordinating with investors, identifying investment opportunities, analysing them, obtaining necessary approvals, funding, managing the assets post investment and exiting the investments to meet the investment objectives and policy of the fund.

The compensation for the selected candidate will be in tune with the industry practice, it said. The selection of a suitable candidate will be done by a search-cum-selection committee.

While the Centre would hold a maximum 49% stake in the NIIF, it would give stakes to overseas sovereign, quasi-sovereign, multilateral and bilateral investors to co-invest in it as anchor investors. Cash-rich PSUs could also contribute to the NIIF. It would also leverage the corpus to raise funds from the market.

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