Govt approves additional ₹30,000 crore allocation to NIIF, taking total commitment to ₹60,000 crore

In a move aimed at scaling up investments in infrastructure and attracting larger pools of global institutional capital, the Centre on Monday approved an additional ₹30,000 crore allocation to the National Investment and Infrastructure Fund (NIIF), taking its total capital commitment to ₹60,000 crore.

The approval, based on a proposal by the Department of Economic Affairs under the finance ministry, will support NIIF's continued growth and enable it to raise larger funds, attract investors across geographies, and deepen investments in key sectors of the economy, according to a statement issued by NIIF on Monday.

The fresh allocation will be deployed primarily towards Infrastructure Fund II, the successor to India's largest domestic infrastructure fund, along with additional co-investments.

The fund will focus on sector-specific platforms across transportation, energy, digital infrastructure, urban infrastructure and emerging areas such as e-mobility. NIIF said fundraising for the fund has progressed substantially, with most existing investors expected to renew their commitments.

The government also plans to launch additional bilateral and successor fund strategies during FY28-FY30.

Earlier, Mint reported on 23 December 2025 that the Centre was considering a ₹30,000-crore equity infusion into NIIF.

Commenting on the approval, NIIF managing director and CEO Sanjiv Aggarwal said the fresh allocation reaffirms the government's support for NIIF's catalytic capital model, which has helped build a strong institutional investor base comprising sovereign wealth funds, pension funds, multilateral and bilateral institutions, and domestic financial institutions.

“We are grateful for this allocation of ₹30,000 crore, which is a strong reaffirmation of government support to NIIF and reinforces the catalytic capital model that has defined NIIF since inception. We look forward to raising our next vintage of funds and scaling our investment activity to support India's growth story,” Aggarwal said.

NIIF's track record

Established in 2015, NIIF was created to use catalytic public capital to attract large-scale domestic and global institutional investments into infrastructure and other nationally important sectors.

Since inception, NIIF has raised approximately ₹40,000 crore in overall capital commitments, including the government's anchor contributions to its funds. It has also returned around ₹12,000 crore to investors—equivalent to nearly half of the capital drawn—through portfolio exits.

NIIF currently manages four investment strategies—infrastructure, private markets, growth equity, and climate investments, including investments in the India-Japan business corridor.

Together, these strategies have deployed capital across 25 entities spanning ports and logistics, renewable energy, roads and highways, digital infrastructure, healthcare, electric mobility, manufacturing, technology and affordable housing.

The platform also advises central and state governments on public-private partnership (PPP) initiatives and investment opportunities aligned with programmes such as Gati Shakti, Digital India, Make in India, FAME and PM E-DRIVE.