The National Investment and Infrastructure Fund (NIIF) has emerged as one of the most viable sources of infrastructure financing in India. As the quasi-sovereign fund undertakes further investments and its projects come onstream, it will play a key role in helping the Indian economy achieve its growth targets. In a recent newsletter published by NIIF, Sanjiv Aggarwal, Managing Director and Chief Executive Officer, NIIF, spoke about the fund’s ongoing portfolio expansion, recent infrastructure investments, strategic exits and collaborations, and its commitment to economic growth. Edited excerpts…
The past year has been an important one for NIIF, marked by strong momentum across our investment strategies, meaningful exits, new investment activity and continued confidence from investors and partners. It is a privilege for NIIF to have the Government of India as an anchor investor and shareholder. The government’s commitment to invest an additional Rs 300 billion into NIIF funds is a significant milestone and a strong reaffirmation of NIIF’s standing as an institution. It strengthens our ability to attract long-term institutional capital, scale investment activity and deepen our presence across sectors of national importance.
The government’s commitment will support our immediate fundraising priorities, including Infrastructure Fund II, while also enabling NIIF to develop new bilateral and successor fund strategies. NIIF’s Infrastructure Fund II will build on the foundation created by our first infrastructure fund, enabling us to continue building industry leaders across transportation, energy and digital infrastructure. It will also allow us to tap into emerging opportunities in areas such as urban infrastructure and e-mobility.
Having established itself as a credible, well-governed institution for global investors seeking exposure to India, NIIF is now entering its next phase of growth. NIIF 2.0 will be defined by a larger ambition: to launch successor funds, develop new areas such as credit, scale our existing platforms and continue expanding NIIF’s role as a catalyst of institutional capital into sectors and asset classes that drive India’s growth story.
In March 2026, we achieved a successful first close of NIIF Private Markets Fund II (PMF-II). Having secured commitments of $750 million for PMF-II, we remain confident of scaling the fund to over $1 billion. This reflects the strength of NIIF’s private markets platform and the continued trust our investors place in our ability to identify and back high quality third-party fund managers and businesses across India.
Over the past year, NIIF has also demonstrated its ability to build, scale and monetise high quality businesses. Recent exits across roads, renewables and electric vehicle (EV) manufacturing have reinforced the strength of our investment approach and the depth of our asset management capabilities. Together, completed exits and announced sale transactions represent over $1.9 billion in distributions and expected realisations, underscoring our ability to deliver liquidity and strong outcomes across multiple exit routes, including strategic sales and public markets. As we look ahead, we will continue to build resilient businesses, deepen our role as a partner of choice for global investors seeking exposure to India, deliver strong financial outcomes and bring more long-term capital into the country.
Key investment updates
- AnantGrid: NIIF has established AnantGrid Private Limited, a wholly owned platform to build transmission networks that support India’s growing energy needs and accelerate its energy transition. In March 2026, NIIF and AnantGrid entered into a pre-bid partnership with Bajel Projects, an established engineering, procurement and construction player, to bid for projects of mutual interest. NIIF’s investment in AnantGrid marks the ninth investment by its infrastructure fund and its fourth investment in the energy sector. It advances NIIF’s focus on supporting India’s energy transition and meeting the country’s growing electricity demand.
- Eka Mobility: NIIF’s India-Japan Fund has invested Rs 5 billion – approximately $57 million – in Eka Mobility, a leading commercial EV manufacturer focused on e-buses. The investment will support Eka’s plans to scale manufacturing capacity, deepen in-house R&D, and strengthen its supply chain and go-to-market capabilities in India and select international markets. With this investment, the India-Japan Fund has expanded its deployment across the e-mobility manufacturing value chain. Its portfolio now includes Ather Energy in electric two-wheelers, Mahindra Last Mile Mobility in electric three-wheelers and small commercial vehicles and Eka Mobility in e-buses.
- Digital Edge: Digital Edge India has commenced operations for the first phase of its 350 MW AI-ready hyperscale data centre campus in Navi Mumbai, with around 18 MW now operational. The campus is expected to be one of India’s largest single-site data centres, reflecting the scale of demand for next-generation digital infrastructure.
- IntelliSmart Infrastructure: NIIF has signed a definitive agreement for the sale of IntelliSmart Infrastructure Private Limited to Adani Energy Solutions Limited with an equity value of Rs 30.5 billion ($320 million). NIIF was an early mover in India’s smart metering sector, helping build IntelliSmart at a time when the market was still taking shape. IntelliSmart’s growth into one of India’s top three smart metering players, with a portfolio of over 22 million smart meters across five states, reflects NIIF’s ability to scale infrastructure businesses in emerging sectors.
- Aseem Infrastructure: NIIF has signed definitive agreements to sell its stake in Aseem Infrastructure Finance to TPG, alongside co-investor partners GIC and ICICI Bank. Aseem has grown into one of India’s fastest growing sustainable infrastructure finance companies, supporting sectors including renewable energy, power transmission, green mobility and digital infrastructure. It also counts the Government of India and SMBC Japan among its minority shareholders. The transaction marks a strong validation of NIIF’s platform-building approach and Aseem’s institutional quality, while delivering strong returns for NIIF’s investors.
Landmark exits during the past year
NIIF has delivered liquidity across strategies, demonstrating its ability to build, scale and monetise high quality businesses and platforms in sectors of national importance.
In line with infrastructure sector exits, NIIF exited Ayana Renewable Power in one of India’s largest renewable energy exits, in March 2025. This was followed by the exit of select road assets under Athaang Infrastructure in June 2025, marking one of the fastest deal closures in the road sector, completed in just four months. In February 2026, NIIF’s Strategic Opportunities Fund achieved a phased exit in Ather Energy via an initial public offering and subsequent block trades. Ather Energy became the first listed company across NIIF platforms. NIIF continues to be an investor in Ather through the India-Japan Fund. Continuing this momentum, NIIF signed a definitive agreement in June 2026 to sell IntelliSmart, one of India’s top three smart metering players. Shortly thereafter, in July 2026, NIIF signed a definitive agreement to sell Aseem Infrastructure, one of the country’s fastest growing sustainable infrastructure finance companies. These exits reinforce NIIF’s track record of delivering outcomes for investors while building businesses aligned with India’s long-term growth priorities.
Strategic advisory: Collaborating with the government to unlock investment opportunities
During the past year, NIIF continued to support the creation of investible pathways across sectors of national importance, including deep technology, space, maritime, semiconductors and student housing.
- R&D and Innovation Fund: NIIF’s Strategic Initiatives and Policy Advisory team supported the Department of Science & Technology and the Department of Economic Affairs in structuring the Rs 1 trillion R&D and Innovation Fund (RDIF). The fund is housed as a separate vertical within the Anusandhan National Research Foundation, a statutory body under the Department of Science and Technology, while operating independently. The RDIF has commenced operations, with the Biotechnology Industry Research Assistance Council and the Technology Development Board (TDB) nominated as second-level fund managers. In addition, TDB has identified 22 companies for funding support.
- Maritime Development Fund: NIIF also contributed to the structuring of the proposed Rs 250 billion Maritime Development Fund, a dedicated vehicle to support shipbuilding, ship repair, port infrastructure and shipping tonnage. The proposed structure includes:
–The Rs 200 billion Maritime Investment Fund, with 49 per cent contributed by the government and 51 per cent by private or institutional investors.
–The Rs 50 billion Interest Incentivisation Fund, funded entirely through budgetary support. The fund is expected to operate as financial assistance or grant support, aimed at reducing the effective cost of debt and
improving the bankability of maritime projects.
Strategic partnerships
NIIF has expanded its partnerships with both government and corporate stakeholders. It has signed an MoU with the government of Bihar to provide strategic support in attracting private investment in infrastructure and advancing asset monetisation efforts. It has also signed an MoU with Indian Oil Corporation Limited to explore synergies and business opportunities.
Other key achievements
NIIF Limited became a signatory to the UN-supported Principles for Responsible Investment, marking an important milestone in its environmental, social and governance journey. This reflects NIIF’s commitment to integrating responsible investment practices across its investment life cycle and portfolio engagement.
NIIF undertook a nature- and biodiversity-focused assessment of its infrastructure fund portfolio, mapping portfolio-level dependencies and exposures. Aligned with global best practices, the assessment builds internal capacity, enhances risk management and supports preparedness for credible future disclosures.
Lastly, NIIF prepared its IFRS S1- and S2-aligned report for 2024-25, detailing its assessment of climate-related risks and opportunities across its direct investments. This is among the early IFRS-aligned assessments by a financial institution in India and establishes a strong foundational framework for credible and transparent future disclosures.
“Recent exits across roads, renewables and EV manufacturing have reinforced the strength of our investment approach and the depth of our asset management capabilities.”
