India’s maiden sovereign wealth fund NIIF today signed an agreement with Russia’s Rusnano OJSC to set up a fund that will invest in high technology projects in India.
“NIIF signs MoU (Memorandum of Understanding) with Rusnano of Russia for setting up India-Russia High Technology Fund. NIIF fast taking shape,” Economic Affairs Secretary Shaktikanta Das tweeted.
Both NIIF and Rusnano will establish a joint working group with a view to further develop cooperation and work on the development of the definitive agreements.
The High Technology Private Equity Fund, a finance ministry statement said, will invest in projects in India.
The MoU follows Prime Minister Narendra Modi’s visit to Russia on December 23-24, 2015, during which discussions were held between NIIF and Rusnano.
“Both sides agreed to cooperate in diverse sectors and facilitate high-technology investments in India,” it added.
Set up in December, the Rs 40,000 crore National Investment and Infrastructure fund (NIIF) would invest in greenfield, brownfield and stalled projects.
“NIIF will be a major investor in infrastructure in coming months,” Das said.
Rusnano is a Russian development institute with interest in projects in the field of high technologies and defence including the projects aimed at establishment of manufacturing industrial enterprises in India.
Government is in consultation with several sovereign funds and pension funds from Russia, Singapore, UK and UAE to participate in the NIIF. Government holds 49 per cent stake in the fund and the rest would be held privately.
The objective of NIIF is to maximise economic impact mainly through infrastructure development in commercially viable infrastructure projects and other nationally important projects in India.