The forthcoming Union Budget may announce fund infusion in some big-ticket projects like Hyderabad’s Metro rail work through the newly-created National Investment and Infrastructure Fund (NIIF).
The inclusion of the Hyderabad Metro project assumes significance since Prime Minister Narendra Modi himself had recently asked the authorities for expediting the much-delayed project.
According to sources privy to the development, the NIIF, which came into existence in December 2015 with the aim of working as a corpus for funding infrastructure projects, may go on to fund around three to four such projects in 2016-17. Announcements regarding this could be made in the Union Budget, which is to be presented by finance minister Arun Jaitley on February 29.
The total worth of these projects could be in the range of Rs 25,000 crore to Rs 30,000 crore, sources informed. Sources further informed that apart from the Hyderabad Metro rail project, the Ring Road project in Delhi and Konkan Railways expansion work may also be funded by the NIIF. The Union Budget, they added, could make an announcement to this effect. Mr Modi, during a recent review meeting of various stalled projects across the country, had called for fast-tracking of the completion of the Hyderabad Metro rail project. Reviewing the Hyderabad Metro rail project, the Prime Minister had exhorted all authorities concerned to complete this public-private-partnership (PPP) project at the earliest and with the best possible quality.
With a view to maximise economic impact through infrastructure development in commercially viable projects, both greenfield and brownfield, including stalled projects, the government had in December last year, approved the creation of NIIF. The Fund aims to attract investment from both domestic and international sources.
The Centre will put in Rs 20,000 crore in the NIIF while another Rs 20,000 crore will be infused by domestic and foreign investors.
On December 29, 2015 the first meeting of the governing council of the NIIF was held, where it was decided that the process of finalising the CEO of the fund would be wrapped up by February 2016.
Mr Jaitley is the chairman of the governing council, which also consists of five members, including the economic affairs and financial services secretaries and SBI chairperson Arundhati Bhattacharya.
