The National Investment and Infrastructure Fund (NIIF) on Wednesday entered into a collaboration with the Japan Bank for International Cooperation (JBIC) to launch a $600 million India-Japan Fund (IJF) with JBIC and Government of India (GoI) as investors.
This joint initiative signals a key dimension of collaboration between the two countries in an area that is a shared priority viz. climate and environment, said Ministry of Finance.
India Japan Fund will focus on investing in environmental sustainability and low carbon emission strategies and aims to play the role of being a ‘partner of choice’ to further enhance Japanese investments into India., it added.
This is the NIIF's first bilateral fund, with the Indian government contributing 49% of the target corpus and the JBIC 51%. The fund will be managed by NIIF and JBIC IG, an arm of JBIC.
Earlier in August, Finance Minister Nirmala Sitharaman invited JBIC for an active engagement with NIIF, EXIM Bank of India and other financial institutions citing huge opportunity for investment in the country.
During the meeting with JBIC Governor Hayashi Nobumitsu, both exchanged views on JBIC's recent activities in India contributing towards Japan's investment target of five trillion yen over the next five years.
Japan has agreed to provide 5 trillion yen in public-private investment and loans to India over the next 5 years. This goal was set by both countries during Prime Minister Kishida Fumio's visit to India in March of last year.
Source Name : Economic Times