The Union Cabinet chaired by the Prime Minister Shri Narendra Modi gave its ex-post facto approval for a Memorandum of Understanding (MoU) between India and the United Arab Emirates (UAE) signed on 11th February, 2016 to mobilise long term investment into the National Investment and Infrastructure Fund (NIIF).

The objective of NIIF is to maximize economic impact mainly through infrastructure development in commercially viable projects, both greenfield and brownfield, including stalled projects, NIIF would solicit equity participation from strategic anchor partners.

The MoU will help establish a transparent and high-level framework and collaboration platform under which both countries intend to explore ways to facilitate and expand the participation of UAE's investment institutions in appropriate infrastructure projects and institutions in India including NIIF, in a manner consistent with the established investment criteria and standards in a mutually agreed manner.

 A joint working group comprising of the concerned representatives of both parties would take forward cooperation under this MOU and to discuss and agree the terms, principles and criteria jointly.

Background:

The Cabinet approved the creation of the National Investment and Infrastructure Fund (NIIF) in July, 2015. The NIIF has already been established as a Category II Alternate Investment Funds (AIF) as per the regulations of the Securities and Exchange Board of India (SEBI).

The Joint Statement with UAE (India-UAE) during the visit of Prime Minister of India to UAE on 16-17 August 2015, mentions the establishment of UAE-India Infrastructure Investment Fund, with the aim of reaching a target of USD 75 billion to support investment in India's plans for rapid expansion of next generation infrastructure, especially in railways, ports, roads, airports and industrial corridors and parks.

Investment framework to channel UAE institutional capital into India's NIIF for commercially viable infrastructure projects under a joint working group. A Memorandum of Understanding between India and the United Arab Emirates sets a framework to mobilise long term UAE institutional investment into the National Investment and Infrastructure Fund (NIIF) to finance commercially viable greenfield and brownfield infrastructure projects, seeking equity participation from strategic anchor partners and establishing a joint working group to agree terms, principles and investment criteria for such participation.