"There is a third fund which we are designing. The size of the fund will be $2 billion," NIIF managing director and chief executive Sujoy Bose said at a function. "The new fund will focus on major infrastructure projects and look for partners who are willing to take long-term risks with us," he said, adding, capital raising for the new fund will begin soon.
On the return from the proposed fund, Bose said, "We believe that with the kind of fast growth that the economy is clipping at, there will be plenty of return over time." The Asian Infrastructure Investment Bank will be the anchor investor for the fund of funds, he said.
Yesterday finance minister Piyush Goyal had said the AIIB board had approved a $200-million capital infusion into the fund of funds of the NIIB. In the first tranche, the multilateral bank will pump in $100 million and the remaining some time later. This proposed fund infusion can be leveraged 10-12time, taking the overall fund play to the tune of $2.4 billion, the minister had said.
Speaking on the same event, British chancellor of the exchequer Philip Hammond said the Indo-British trade grew 15 per cent last year and Britain continues to be the one of largest investors in the country. Citing infrastructure as one of the areas where thereis scope for more collaboration between both the countries, Hammond said, "India will require $4.5 trillion investmentsinto the infra sector by 2040. But there is an estimated gap of $526 billion. Government funding alone would not besufficient to meet this need."
"Mobilising private capital will be critical to fill this gap. As the world's leading financial center, Britain is able to support India in this," Hammond said.
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