The National Investment and Infrastructure Fund Limited (NIIFL) has launched a $600-million bilateral fund between India and Japan – EQ
In Short : The National Investment and Infrastructure Fund Limited (NIIFL) has launched a $600-million bilateral fund in collaboration with Japan to invest in renewable energy and e-mobility businesses in India. This joint initiative signifies strengthened ties between the two countries and underscores their commitment to sustainable development. The fund aims to drive investments in clean energy and electric mobility, promoting innovative solutions and reducing the carbon footprint in both nations.
In Detail : Fund aims investments renewables, e-mobility, and circular economy
The National Investment and Infrastructure Fund Limited (NIIF), a state-owned entity, unveiled a $600 million (Rs 4,900 crore) India-Japan Fund on Wednesday. This venture is in collaboration with the Japan Bank for International Cooperation (JBIC), a financial institution backed by the Japanese government.
This marks NIIF’s inaugural bilateral fund. The target corpus of $600 million will see a 51 per cent contribution from JBIC and a 49 per cent input from the Indian government, as stated in NIIF’s press release.
The fund aims to channel investments into India’s environmental conservation sectors, encompassing renewable energy, e-mobility, and circular economy areas like waste management and water management. Moreover, it seeks to bolster collaboration between Indian and Japanese enterprises across various sectors.
In March 2022, both India and Japan set a collaborative goal: a 5 trillion yen inflow in the form of public and private investment and financing from Japan to India over an upcoming five-year span.
Hayashi Nobumitsu, Governor of JBIC, highlighted the growing interest of Japanese companies in the Indian market. This interest stems from the current global instability, supply chain disruptions, and India’s pivotal role as a leader in the Global South. “India remains a key partner for Japan,” Nobumitsu said, expressing JBIC’s commitment to environmental conservation in India and promoting symbiotic relations between Indian and Japanese firms.
Rajiv Dhar, Managing Director & CEO of NIIF, emphasised the fund’s potential in catering to India’s environmental and societal needs.
Furthermore, JBIC IG Partners, an affiliate of JBIC, will work alongside NIIF to foster Japanese investments in India.
Established in 2015, NIIF oversees funds across diverse asset classes, boasting over $4.9 billion of equity capital commitments spread across its portfolios – Master Fund, Fund of Funds, Strategic Opportunities Fund, and the newly launched India-Japan Fund.
