TataCliq CPA IN

Govt to create fund for steel firms under NIIF

steel 650x350(2)

Government is looking at creating a fund under India’s first sovereign wealth fund, NIIF, which will address capital requirements of domestic steel companies.

Flipkart IN

The government in December created the 40,000-crore-rupee National Investment and Infrastructure Fund (NIIF) as an investment vehicle for funding commercially viable greenfield, brownfield and stalled projects.

“Government is also working on operationalising National Infrastructure Fund, the sovereign fund envisaged as a mother fund and within it will be specific sectoral funds.

“We are trying to see how we can structure something for the steel industry there, which I think will definitely go a long way in bringing down the capital costs,” Steel Secretary Aruna Sundararajan said at an event here while speaking on the capital requirements of the domestic steel industry.

The Finance Ministry had signed an MoU with Abu Dhabi and Russian nano-technology company and is also having discussions with some funds with the UK for investments in NIIF.

While the government will invest 20,000 crore rupees in NIIF, the remaining amount will come from private investors.
NIIF is set up as a Fund of Funds (Category II Alternate Investment Fund) with a proposed series of funds.

She further said that high capital cost is one of the major reasons that affects the competitiveness of Indian steel industries and the government is working on a two-pronged strategy to deal with that.

PTI

Leave a Reply