NIF - National Investments Fund
· One of the sources of finance for Indian Railways Capex - Capital Expenditure
· Established in 2005
· Maintained by : DIPAM - Dept of Investments & Public Asset Management
· Credits: Proceeds from disinvestment of CPSEs - Central Public Sector Enterprises. Initially the proceeds are kept under Public Account of India.
· Corpus(Amount) of NIF - Permanent nature. That means the money with the NIF is permanent in nature and is professionally managed to provide returns (income) to the Government without depleting its value (corpus)
· Managed by : Professional Managers such as SBI Funds Managment pvt ltd, UTI Asset Management Company ltd, LIC Mutual Fund Asset Management Company ltd.
· NIF income- utilised for the following purposes.
1. Subscribing - shares being issued by the CPSE on Rights basis or Preferential allotment of shares as per SEBI regulations ( to ensure 51% ownership by the Govt)
2. For capital infusion in Public Sector Banks & Public Sector Insurance companies to meet BASEL III norms.
3. Investments in Regional Rural Banks/NABARD- National Bank for Agriculture & Rural Development/EXIM Bank - Export - Import Bank/IIFCL - India Infrastructure Finance Company Limited.
4. Equity infusion in Metro Projects
5. Investment in Bhartiya Nabhikiya Vidyut Nigam Limited (BNVNL) & Uranium Corporation of India Limited.
6. Investment in Indian Railways towards Capital Expenditure.