India's National Investment and Infrastructure Fund (NIIF) and Japan Bank for International Cooperation (JBIC) launched a $600 million fund for climate and environment projects on 4 October.
The Indian government will contribute to 49 per cent of the target corpus for the India-Japan fund (IJF), which is NIIF's first bilateral fund. The remaining 51 per cent will be contributed by JBIC, according to Mint.
The India-Japan fund will focus on investing in environmental sustainability and low carbon emission strategies. The aim is to play the role of being a partner of choice to further enhance Japanese investments into India.
NIIF Limited will manage the fund, with support from JBIC IG, a subsidiary of JBIC, to promote Japanese investments in India. NIIF is a sovereign wealth fund that was created in 2015 as an investment platform for international and Indian investors.
The government holds a 49 per cent stake in the fund, while 51 per cent is held by domestic institutional investors, sovereign wealth funds, international pension funds, and others like the US International Development Finance Corporation (USIDFC), multilateral development banks including Asian Infrastructure Investment Bank (AIIB), Asian Development Bank (ADB), and New Development Bank (NDB).
The setting up of India Japan Fund represents a key milestone in the strategic and economic partnership between the Government of Japan and Government of India.
The IJF plans to prioritize investments in environmental sustainability and low carbon emission strategies. Its goal is to become a valuable partner in promoting Japanese investments in India.
The establishment of IJF marks a significant breakthrough in the strategic and economic partnership between Japan and India. The fund will actively invest in India's environmental preservation sector, including renewable energy, e-mobility businesses, and circular economy sectors such as waste management and water.