GS 3: Economy | Investment Models

Why in News?

Roadis, a private investor and operator of transport infrastructure worldwide and the National Investment and Infrastructure Fund (NIIF) have jointly set up a platform to invest in road projects in India.

Platform for Road projects in India:

• The platform would invest up to $2 billion of equity targeting toll-operate-transfer models, acquisitions of existing road concessions and investment opportunities in the road sector.
• With 710 km of highways under ownership and management, Roadis is one of the largest European highway concession managers in India.
• Roadis is a wholly owned subsidiary of the Public Sector Pension Investment Board, one
  of Canada’s largest pension funds.

NIIF:

• National Investment and Infrastructure Fund (NIIF) is a fund created by the Government of India for enhancing infrastructure financing in the country.
• This is different from the National Investment Fund.
• Objective: to maximize economic impact mainly through infrastructure development in commercially viable projects, both greenfield and brownfield, including stalled projects.
• NIIF was proposed to be set up as a Trust, to raise debt to invest in the equity of infrastructure finance companies such as Indian Rail Finance Corporation (IRFC) and National Housing Bank (NHB).
• NIIF is envisaged as a fund of funds with the ability to make direct investments as required. As a fund of fund it may invest in other SEBI registered funds.
• The functions of NIIF are as follows:
• Fund raising through suitable instruments including off-shore credit enhanced bonds, and attracting anchor investors to participate as partners in NIIF;

✓ Servicing of the investors of NIIF.
✓ Considering and approving candidate companies/institutions/ projects (including state entities) for investments and periodic monitoring of investments.
✓ Investing in the corpus created by Asset Management Companies (AMCs) for investing in private equity. Preparing a shelf of infrastructure projects and providing advisory service