The Cabinet Committee on Economic Affairs has approved the proposal of M/s IDFC Trustee Company Limited to set up the India Infrastructure Fund II, to be registered as the Alternative Investment Fund (AIF) Category I with the Securities and Exchange Board of India (SEBI) as recommended by the Foreign Investment Promotion Board (FIPB).

The Indian Infrastructure Fund II is aimed at making investment primarily in the sectors of energy utilities, transportation, aviation, telecom infrastructure, other urban infrastructure and public utilities. The fund is targeted to receive contribution from international investors up to Rs. 5500 crore.

Alternative Investment Fund Category I approval permits foreign investor contributions for targeted infrastructure sector investments. Approval was granted for establishment of an Alternative Investment Fund Category I, to be registered under the applicable securities regulatory framework, following a recommendation by the designated foreign investment authority. The fund is structured to receive contributions from international investors and to invest primarily in infrastructure-related sectors including energy utilities, transportation, aviation, telecom infrastructure, urban infrastructure and public utilities.