The Asian Infrastructure Investment Bank (AIIB) is likely to invest $200 million in a fund-of-funds set up by India to take interest in infra projects.
Department of Economic Affairs Secretary SC Garg said there will be a leverage of 10-12 times on the original investment, which can result in up to $2.4billion flowing to finance infrastructure projects.
“Today the (AIIB) board is approving a project... They are investing $100 now and $100 million in the near future. The $200 million in the NIIF which India has set up,” Garg told while addressing reporters on the eve of the AIIB’s annual meeting in Mumbai.
Garg said the AIIB investment will be in a fund-of-funds, hinting that it will be different from the master fund closed recently.
When asked if the investment quantum is low, given that the overall size of the NIIF is $6 billion, Garg replied in the negative, pointing out that the investment by the Abu Dhabi Investment Authority was also $250 million.
Garg said the Government has sent a proposal to fund $475 million for the Mumbai Urban Transport Project - III to the AIIB and added that the concept has been approved.
Garg also said the proposal to have an independent credit rating agency for BRICS nations is on track and will be discussed at a meeting at Johannesburg next month.