After six months of search, the government finally appointed Sujoy Bose, director and global co-head, infrastructure and natural resources, International Finance Corporation (IFC), Washington DC, as chief executive officer of the National Investment and Infrastructure Fund (NIIF) Ltd.
The NIIF is meant to fund development of infrastructure projects and revival of the stalled ones. The government had proposed investing Rs 20,000 crore into the NIIF from the Budget and it expected another Rs 20,000 crore from private investors. The government's share in the NIIF is envisaged at 50 per cent of the total corpus. The NIIF is one of the key infrastructure creation measures of the Narendra Modi government. The fund would act as an umbrella with several funds operating under it like the stressed asset fund, the renewable energy fund and the brownfield project fund.
The Securities and Exchange Board of India (Sebi) had in December last year approved setting up of the NIIF, approved by the Cabinet in July.
According to government sources, Mr Bose will bring his international experience in the infrastructure sector, including experience in raising funds from global investors.
A Search-cum-Selection Committee was constituted under the Secretary, Department of Economic Affairs, Ministry of Finance, for selection of the CEO of NIIF Ltd. Mr Bose was appointed as chief executive officer following conclusion of the selection process.
The NIIF is supervised by a governing council headed by the finance minister. The economic affairs secretary, the financial services secretary, the SBI chairperson and former Infosys CFO Mohandas Pai are members of this council.
The government had established the National Investment and Infrastructure Fund (NIIF) to attract investment from both domestic and international sources for infrastructure development in commercially viable projects.
The National Investment and Infrastructure Fund (NIIF) Limited has been incorporated as a company under the Companies Act, 2013, duly authorised to act as investment manager of the National Investment and Infrastructure Fund.
A senior finance ministry source said, "NIIF establishment activities are underway and steps are being taken to operationalize the initiatives with different investors including RUSNANO, Abu Dhabi Investment Authority(ADIA) and Qatar Investment Authority(QIA)."
"An initial budgetary allocation of Rs 4,000 crore has also been made in the Budget 2016-17. Further allocation would be made as and when necessary."
Earlier this year, the Cabinet had cleared a memorandum of understanding (MoU) between India and the UAE to mobilise up to $75 billion.
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