Government approves additional allocation of ₹30,000 crore for NIIF, taking the total commitment to ₹60,000 crore

In a move aimed at boosting infrastructure investment and attracting more global institutional capital, the Center on Monday approved another ₹30,000 crore allocation to the National Investment and Infrastructure Fund (NIIF), while its total capital commitment ₹60,000 million crowns.

The approval, based on a proposal by the Ministry of Economic Affairs under the Ministry of Finance, will support NIIF’s continued growth and enable it to raise more funds, attract investors across geographies and deepen investment in key sectors of the economy, said a statement issued by NIIF on Monday.

The new allocation will be deployed primarily to Infrastructure Fund II, the successor to India’s largest domestic infrastructure fund, along with other co-investments.

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

The government also plans to launch 28 to 30 more bilateral and follow-on fund strategies during FY28.

Mint had earlier on 23 December 2025 reported that the Center was considering a ₹Infusion of 30,000 crore shares into NIIF.

Commenting on the approval, NIIF Managing Director and CEO Sanjiv Aggarwal said the new allocation reaffirms the government’s support for NIIF’s catalytic capital model, which has helped build a strong institutional investor base including sovereign wealth funds, pension funds, multilateral and bilateral institutions and domestic financial institutions.

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“We are grateful for this assignment ₹30,000 crore, which is a strong endorsement of the government’s support for NIIF and reinforces the catalytic capital model that has defined NIIF since its inception. We look forward to raising another round of funding and expanding our investment activity to support India’s growth story,” said Aggarwal.

IFRS entry

Established in 2015, the NIIF was created to leverage catalytic public capital to attract major domestic and global institutional investment in infrastructure and other nationally critical sectors.

Since inception, NIIF has increased by approx ₹40,000 crore in total capital commitments, including government anchor contributions to its funds. It also came back ₹$12,000 million to investors – equivalent to almost half of the capital drawn – through portfolio exits.

NIIF currently manages four investment strategies – infrastructure, private markets, growth capital and climate investment, including investment in the India-Japan trade corridor.

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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 associated with programs like Gati Shakti, Digital India, Make in India, FAME and PM E-DRIVE.