Requirements To Address The Domestic Steel sector By Govt

The Indian Government has said that it is looking at creating a fund under India’s first sovereign wealth fund, NIIF, which will address capital requirements of domestic steel companies.

As per reports, the Government in December created the Rs 40,000-crore National Investment and Infrastructure Fund (NIIF) as an investment vehicle for funding commercially viable greenfield, brownfield and stalled projects.

Commenting on the issue, Steel Secretary Aruna Sundararajan said, “Government is also working on operationalising National Infrastructure Fund, the sovereign fund, and that is envisaged as a mother fund and within that there will be specific sectoral funds.”

“We are trying to see how we can structure something for the steel industry there, which I think will definitely go a long way in bringing down the capital costs.”

As per reports, while the government will invest Rs 20,000 crore in NIIF, the remaining amount will come from private investors. NIIF is set up as a Fund of Funds (Category II Alternate Investment Fund) with a proposed series of funds.

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