National Investment & Infrastructure Fund (NIIF)
In June with announcements made in budget 205-16, Govt. is making necessary planning to fund and amount of Rs. 20, 0000 crores in National Investment & Infrastructure Fund (NIIF). Govt. is planning to invest some of the dividend income from Public Sector Undertakings in this fund. The estimated income from dividends during the year 2015-16 is budgeted to Rs. 36174 crores. For the time being, it is planned to invest Rs.15000 crores out dividends likely to be received from two rich companies like ONGC & Coal India Ltd. Remaining Rs.5000 crores is likely to be given by central government in the NIIF.
NIIF funds will be used to raise debts and inturn to be invested as equity in infrastructure finance companies such as Indian Railways Finance Corporation and National Housing Bank.
Government has recently announced investment in 100 planned smart cities and new urban renewal scheme for which funds would come from centre, states and public sector undertakings. Few days back, cabinet has approved a sum of Rs. 1 Lakh crore in next five years for 100 smart cities.
If funds available at NIIF are properly used/invested and amount allocated for 100 smart cities is properly utilized in a planned manner, face of our country in the world could be changed to a great extent.