The Union Cabinet on Wednesday approved creation of a Rs20,000-crore National Investment and Infrastructure Fund (NIIF), a sort of sovereign fund, for development of infrastructure projects, including the stalled ones.
The decision to set up the fund was taken at the meeting of the Cabinet headed by Prime Minister Narendra Modi, sources said.
The NIIF, sources said, is being established with an aim to maximise “economic impact” mainly through infrastructure development in commercially viable projects, both green field and brown field, “including stalled projects”.
The fund could also consider funding nationally important projects in the manufacturing sector.
The initial authorised capital of NIIF would be Rs20,000 crore, which will be raised from time to as decided by the Finance Minister.
The Government would contribute 49 per cent of the subscribed capital of NIIF.