The Union Cabinet could take up a proposal to infuse ₹30,000 crore into the National Investment and Infrastructure Fund (NIIF) on Tuesday, people familiar with the matter have told CNBC-TV18.According to the sources, the proposal relates to an ex-post facto approval for the capital infusion into NIIF, a sovereign-linked alternative asset manager anchored by the Government of India.
In the Union Budget for 2026-27, Finance Minister Nirmala Sitharaman raised infrastructure capital expenditure by 8.9% to ₹12.2 lakh crore from ₹11.2 lakh crore in the previous fiscal year, reiterating the government’s commitment to expanding urban and logistics infrastructure.
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The proposed infusion comes against the backdrop of the Centre’s sustained infrastructure push, with capital expenditure rising from ₹2 lakh crore in FY15 to a revised estimate of about ₹11 lakh crore in FY26 and a Budget allocation of ₹12.2 lakh crore for FY27.In her Budget speech, the FM had said the higher allocation was aimed at “continuing this momentum” in public infrastructure creation.The Budget also underscored the role of institutions such as NIIF and the National Bank for Financing Infrastructure and Development (NaBFID) in strengthening India’s infrastructure financing ecosystem.Over the past decade, the government has introduced new financing structures, including Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs), while setting up institutions such as NIIF to attract long-term domestic and global capital into infrastructure projects.The latest Budget outlined plans to accelerate infrastructure development in Tier-II and Tier-III cities, develop new freight corridors and national waterways, and establish City Economic Regions as growth hubs beyond major metropolitan centres.Established in 2015, NIIF operates as a collaborative investment platform for infrastructure and other strategic sectors, backed by the Centre and a range of domestic and international investors.
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