In Today’s News:
- Equity infusion into NIIF’s platform.
- Insolvency and Bankruptcy Board of India.
1. Equity infusion into NIIF’s platform
The Union Cabinet, chaired by the Prime Minister, Shri Narendra Modi has given its approval to the proposal for equity infusion by the Government of Rs 6000 crores in NIIF Debt Platform sponsored by National Investment and Infrastructure Fund (NIIF), comprising of Aseem Infrastructure Finance Limited (AIFL) and NIIF Infrastructure Finance Limited (NIIF-IFL).
Prelims GS – Economic Development
- National Investment and Infrastructure Fund Limited (NIIFL) is a collaborative investment platform for international and Indian investors, anchored by the Government of India.
- NIIFL invests across asset classes such as infrastructure, private equity, and other diversified sectors in India, with the objective to generate attractive risk-adjusted returns for its investors.
- NIIF currently manages three funds each with its distinctive investment mandate.
- The funds are registered as Alternative Investment Fund (AIF) with the Securities and Exchange Board of India (SEBI).
- Three funds managed by NIIF are Master Fund, Fund of Funds, and Strategic Opportunities Fund, each with its distinct investment strategy.
- NIIF Master Fund primarily invests in operating assets in core infrastructure sectors such as transportation and energy.
- NIIF Fund of Funds invests in funds managed by best-in-class fund managers focused on some of the most dynamic sectors in India such as climate infrastructure, middle-income & affordable housing, digital consumer platforms, and other allied sectors.
- NIIF Strategic Opportunities Fund is a Private Equity fund that aims to build scalable businesses across a range of opportunity long but capital short sectors.
Click here to know more about NIIF on the official website.
Mains GS3 – Economic Development
Impact of Equity Infusion in NIIF platform:
- Rs 6,000 crores will be invested as equity in the NIIF Debt Platform over two financial years, i.e., 2020-21 and 2021-22.
- NIIF Infrastructure Debt Financing Platform is expected to contribute nearly Rs 1 lakh crores in debt to the infrastructure sector over the next 5 years.
- This will act as a catalyst in attracting more investments into the infrastructure sector as envisaged in the National Infrastructure Pipeline.
- This process will also help relieve the exposure of banks to infrastructure projects and free up space for new green-field projects.
- This will enhance the liquidity of infrastructure assets and lower the risks.
- A well-capitalized, well-funded, and well-governed NIIF debt Platform can play a major role in infrastructure financing and development of the Bond Market in India by acting as a AAA/AA-rated intermediary between the bond markets and infrastructure projects and companies.
Click here to view the official press release of NIIF equity infusion.
2. Insolvency and Bankruptcy Board of India
IBBI has proposed amendments in regulations for withdrawal from the voluntary liquidation process.
Prelims GS – Economic Development
- The Insolvency and Bankruptcy Board of India was established on 1st October 2016 under the Insolvency and Bankruptcy Code, 2016 (Code).
- It is a key pillar of the ecosystem responsible for the implementation of the Code that consolidates and amends the laws relating to reorganization and insolvency resolution of corporate persons, partnership firms, and individuals in a time-bound manner for maximization of the value of assets of such persons, to promote entrepreneurship, availability of credit and balance the interests of all the stakeholders.
- It is a unique regulator: regulates a profession as well as processes.
- It has regulatory oversight over the Insolvency Professionals, Insolvency Professional Agencies, Insolvency Professional Entities, and Information Utilities.
- It writes and enforces rules for processes, namely, corporate insolvency resolution, corporate liquidation, individual insolvency resolution, and individual bankruptcy under the Code.
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