Union Cabinet gives nod to India, UAE MoU on NIIF

The Union Cabinet has given its approval for a MoU between India and United Arab Emirates (UAE) to mobilise long-term investment in National Investment and Infrastructure Fund (NIIF).
Decision in this regard was taken by Union Cabinet meeting chaired by Prime Minister Narendra Modi in New Delhi.
Key facts

• The MoU will help establish a transparent and high-level framework and collaboration platform for both countries.
• Under this platform both countries will explore ways to facilitate and expand the participation of UAE’s investment institutions in appropriate infrastructure projects and institutions in India including NIIF.
• Under this MOU, a joint working group comprising of the concerned representatives of both parties would be established to take forward cooperation and to discuss and agree the terms, principles and criteria jointly.

Background

• In August 2015, during Prime Minister Narendra Modi’s visit to UAE both countries had agreed to establishment of UAE-India Infrastructure Investment Fund.
• The aim of the fund was to reach a target of 75 billion dollars to support investment in India’s plans for rapid expansion of next generation infrastructure.

About National Investment and Infrastructure Fund (NIIF)

• The NIIF has been established by Union Government as a Category II Alternate Investment Funds (AIF) as per the regulations of the Securities and Exchange Board of India (SEBI).
• The objective of NIIF is to maximize economic growth of the country mainly through infrastructure development in commercially viable projects (both greenfield and brownfield), including stalled projects.
• For the investment purpose, NIIF will solicit equity participation from strategic anchor partners.

Month: Current Affairs - March, 2016