Economic Affairs Secretary Shaktikanta Das said the NIIF is in advanced talks with various multilateral agencies and sovereign wealth funds for equity participation and expressed hope that it should materialise soon.
"The NIIF is working to bring in other investors, who would become partners of government of India, in setting up this fund...the discussions are going on and they are in very advances stage with multilateral institutions as well as with other long term investors to come in as equity partners into this investment vehicle," he said.
The government wants the investment vehicle to be private sector driven, with government providing a facilitating role, he said at the New Development Bank event here.
The government wants its share to be restricted to 49 per cent in National Investment and Infrastructure Fund (NIIF).
In December 2015, the government set up the NIIF as an investment vehicle for funding commercially viable greenfield, brownfield and stalled projects.
While the Centre will invest Rs 20,000 crore in NIIF, the remaining would come from private domestic and foreign investors who can invest in the umbrella fund or smaller sector or project-specific funds within it.
Last year, the government announced that it is in the process of setting up two sub-funds under NIIF -- one in clean energy fund which will primarily focus on renewable energy, and another with focus on highway projects.
It has been incorporated as a company under the Companies Act, 2013, authorised to act as an investment manager.
Speaking on the fiscal policy of the government, Das said the government has accepted most of the recommendations made by Fiscal Responsibility and Budget Management Committee headed by former Revenue Secretary N K Singh.
"Broadly the committee's report has been adopted by the finance minister in this year's Budget and the fiscal target for 2017-18 has been fixed accordingly," he said.
He further said the government will soon come out with detailed decision on the various other aspects of the committee's report.
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