FM Sitharaman Chairs 6th NIIF Governing Council Meet to Review Progress

In addition, NIIF briefed the GC on a new bilateral fund under discussion with the United States, signalling expanded global engagement and potential for deepening financial collaboration between the two nations.

Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman, chaired the 6th meeting of the Governing Council (GC) of the National Investment and Infrastructure Fund Limited (NIIF) in New Delhi on June 10, 2025, marking a critical juncture in India’s efforts to mobilize global capital for infrastructure development and economic growth.

The high-level meeting brought together key stakeholders from government, financial institutions, and strategic partners to assess the NIIF’s evolving mandate as a sovereign-linked asset manager and its growing role in channeling investments into India’s core sectors.

Strong Global Partnerships and Capital Mobilization

The Governing Council lauded NIIF’s success in building strategic global partnerships with marquee investors, including:

• Sovereign Wealth Funds: Abu Dhabi Investment Authority (ADIA), Temasek

• Pension Funds: AustralianSuper, Ontario Teachers’ Pension Plan, Canada Pension Plan Investment Board (CPPIB)

• Multilateral Development Banks: Asian Infrastructure Investment Bank (AIIB), Asian Development Bank (ADB), New Development Bank (NDB)

• Government Agencies: Japan Bank for International Cooperation (JBIC)

These relationships have significantly enhanced the NIIF’s credibility as a trusted platform for long-term infrastructure investment.

The Council acknowledged that NIIF has crossed a critical milestone with Assets Under Management (AUM) exceeding ₹30,000 crore, while also catalyzing over ₹1.17 lakh crore in investments, aligning closely with national economic priorities and infrastructure goals.

Review of NIIF’s Four Active Funds

The GC was presented with an in-depth update on NIIF’s strategy and performance across its four core funds:

1. Master Fund (Fund for Infrastructure)

   • Fully committed

   • Focused on greenfield infrastructure in ports, logistics, airports, and data centres

2. Private Markets Fund (Fund of Funds)

   • Fully committed to private equity vehicles across diverse sectors

   • Demonstrated strong fund manager partnerships and capital deployment

3. India-Japan Fund (Climate and Sustainability + Bilateral Cooperation)

   • Focuses on climate-resilient and sustainable infrastructure

   • Supports Japan-India bilateral investments in innovation and decarbonisation

4. Strategic Opportunities Fund (Growth Equity)

   • Targets scalable businesses that are critical to India’s economic transformation

   • Supports sectors like digital infrastructure, energy, and industrial innovation

Key Developments and Upcoming Funds

The GC also reviewed progress on the Private Markets Fund II (PMF II), which has a target corpus of $1 billion. It was noted with appreciation that PMF II had successfully onboarded private sector investors, in alignment with guidance from previous council meetings. The fund is expected to reach its first closing shortly.

In addition, NIIF briefed the GC on a new bilateral fund under discussion with the United States, signalling expanded global engagement and potential for deepening financial collaboration between the two nations.

Strategic Direction and Recommendations

The Governing Council provided key strategic directives to NIIF:

• Leverage Sovereign-Backed Credibility: Maximize India’s sovereign backing to enhance investor confidence and fundraising success.

• Global Positioning: Adopt a proactive approach to international investor engagement and showcase India’s infrastructure story on the global stage.

• Diversify Capital Sources: Explore alternative financing mechanisms beyond traditional investors, including blended finance, green bonds, and digital infrastructure funds.

• Accelerate Operationalisation: Ensure timely deployment of committed funds to maximize economic impact.

• Annual Review: The Council recommended that the GC should meet on an annual basis to continuously steer NIIF’s growth and alignment with India’s economic roadmap.

High-Level Participation

The meeting saw participation from key financial and policy leaders, including:

• Shri Ajay Seth, Finance Secretary & Secretary, Department of Economic Affairs (DEA)

• Shri M. Nagaraju, Secretary, Department of Financial Services (DFS)

• Ms. Anuradha Thakur, Officer on Special Duty, DEA

• Shri C.S. Setty, Chairman, State Bank of India

• Shri Uday Kotak, Founder & Director, Kotak Mahindra Bank

Their insights and institutional experience helped shape the dialogue around NIIF’s strategic priorities and future investment focus.

The Road Ahead

With India targeting a $5 trillion economy and emphasizing infrastructure-led growth, NIIF is expected to play a pivotal role in catalysing capital, supporting sustainable development, and unlocking global investment opportunities across sectors.

Smt. Sitharaman’s leadership at the GC reaffirmed the Government of India’s commitment to making NIIF a leading model of public-private partnership and a gateway for global capital into India's infrastructure landscape.