The government will set up a National Investment and Infrastructure Fund to boost capital spending in the infrastructure sector. The proposal was first mooted in the Budget this year by Finance Minister Arun Jaitley.
The Fund will have an initial corpus of Rs. 20,000 crore. It will work like a company and the government will appoint a board of directors to run its daily operations. The fund will partly receive budgetary support, with the rest coming from dividends paid by cash-rich public sector companies. The government will mainly target long-term sovereign wealth funds and pension funds to invest in the National Investment and Infrastructure Fund.