Previous Year Question
With reference to the ‘National Investment and Infrastructure Fund’, which of the following statements is/are correct?
It is an organ of NITI Aayog.
It has a corpus of ₹4,00,000 crore at present.
Select the correct answer using the code given below:
1 only
2 only
Both 1 and 2
Neither 1 nor 2
Correct Answer: D
Detailed Solution
Statement 1 is incorrect. The National Investment and Infrastructure Fund (NIIF) is not an organ of NITI Aayog. It was established by the Government of India as an investment platform to increase infrastructure investment in the country. It is managed by National Investment and Infrastructure Fund Limited (NIIFL).
NIIF was registered with the Securities and Exchange Board of India (SEBI) in December 2015 as a Category-II Alternative Investment Fund (AIF).
Statement 2 is also incorrect. The proposed corpus of NIIF was ₹40,000 crore, not ₹4,00,000 crore. The amount stated in the question is ten times the proposed corpus.
The proposed structure of the ₹40,000-crore corpus was:
Proposed contribution of the Government of India: ₹20,000 crore.
Remaining amount: To be mobilised from domestic and international long-term investors.
The government’s share was to be limited so that NIIF could operate as a professionally managed investment platform rather than merely as a sovereign fund.
NIIF principally invests through three funds:
Master Fund: Primarily invests in core infrastructure and associated operating assets.
Fund of Funds: Invests in other infrastructure and allied-sector funds.
Strategic Opportunities Fund: Invests in large and strategic business opportunities.
Thus, NIIF was neither an organ of NITI Aayog nor did it have a proposed corpus of ₹4 lakh crore. Both statements are incorrect.