India-UK joint fund to raise 500 million pounds to finance Indian energy projects

With an aim to finance India's energy sector projects, the Indian government in partnership with the UK government on Tuesday has announced to raise 500 million pounds (nearly Rs 4,063 crore). 

The governments of both countries have formed joint India-UK fund under the National Investment and Infrastructure Fund (NIIF). 

The joint UK-India fund aims to leverage private sector investment from the city of London to finance Indian infrastructure projects. 

“Both governments reaffirmed their commitment to anchor invest up to 120 million pounds (nearly Rs 975 crore) each in the joint fund which aims to raise around £500 million, and has the potential to unlock much more in future,” cited the Ministry of Finance in a official statement. 

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Finance Minister Arun Jaitley with UK Chancellor of Exchequer Philip Hammond has announced the latest fund raising deal at the 9th UK-India Economic and Financial Dialogue in New Delhi.

“FM Sh @arunjaitley & UK Chancellor of Exchequer Mr @PHammondMP addressing media post India UK Economic & Finance Dialogue in Delhi today,” Ministry of Finance said on Twitter.

FM Sh @arunjaitley & UK Chancellor of Exchequer Mr @PHammondMP addressing media post India UK Economic & Finance Dialogue in Delhi today pic.twitter.com/r9EbIKRcRY

— Ministry of Finance (@FinMinIndia) April 4, 2017

“Now kick-starting our annual UK-India Economic and Financial Dialogue with@arunjaitley and his team. Look forward to productive talks,” Hammond said on Twitter.

Now kick-starting our annual UK-India Economic and Financial Dialogue with@arunjaitley and his team. Look forward to productive talks. pic.twitter.com/hYElUSNUmV

— Philip Hammond (@PHammondMP) April 4, 2017

“The two Finance Ministers announced that the fund will focus initial investments on India’s rapidly growing energy and renewables market and that a fund manager is expected to be selected by the Autumn,” the statement said.

Progress will be accelerated by starting the process of appointing a fund manager now with early market engagement via the publication of a blueprint, with the aim to identify additional and complementary sectors for fund investments, it further added.