News:Recently,New Development Bank(NDB) has committed $100 million to India’s National Investment and Infrastructure Fund(NIIF).
- The New Development Bank(NDB) formerly referred to as the BRICS Development Bank is a multilateral development bank established by the BRICS states (Brazil, Russia, India, China and South Africa).
- The bank was founded in 2014 but was was launched in 2015 with an initial authorized capital of $100 billion.The bank is headquartered in Shanghai,China.
- The bank aims to contribute to development plans established nationally through projects that are socially, environmentally and economically sustainable.
Objectives of the Bank:
- Promote infrastructure and sustainable development projects with a significant development impact in member countries.
- Establish an extensive network of global partnerships with other multilateral development institutions and national development banks.
- Build a balanced project portfolio giving a proper respect to their geographic location, financing requirements and other factors.
- The bank functions on a consultative mechanism among the BRICS members with all the BRICS member countries possessing equal rights.
- The bank’s agreement specifies that all members of the United Nations could be members of the bank.However,the share of the BRICS nations can never be less than 55% of the voting power.
- NIIF is India’s first sovereign wealth fund set up by the government of India in 2015.It is a fund manager that invests in infrastructure and related sectors in India.
- It was created with the objective to maximise economic impact especially by infrastructure investment in commercially viable projects.
- The Indian government has a 49% stake in NIIF with the rest held by foreign and domestic investors.
- NIIF currently manages three funds each with its distinctive investment mandate. The funds are registered as Alternative Investment Fund (AIF) with the Securities and Exchange Board of India (SEBI).