VENTURE CAPITAL /PRIVATE

EQUITY INVESTMENT IN
INFRASTRUCTURE
 INFRASTRUCTURE
Infrastructure is the support system of Industrial and
agricultural production, foreign and domestic businesses.

Many of the developed countries make a lot of progress

because of the enormous growth of economic and social
infrastructure.

Types of Infrastructure
a) Economic Infrastructure
b) Social Infrastructure
.5
 HOW VC&PE INVEST IN INFRASTRUCTURE
• National Investment and Infrastructure Fund Limited (NIIFL) is a collaborative investment
platform for international and Indian investors, anchored by the Government of India. 

• NIIF currently manages three funds such as:-

a) Master Fund
b) Fund of Funds
c) Strategic Opportunities Fund.

• The funds are registered as Alternative Investment Fund (AIF) with the Securities and Exchange
Board of India (SEBI).
STEPS
 HOW FOREIGN INVESTORS INVEST IN INDIAN INFRASTRUCTURE

• National Investment and Infrastructure Fund Limited (NIIFL) is a collaborative investment platform for
international and Indian investors, anchored by the Government of India. 

• NIIFL manage three funds with distinctive investment mandates. These funds are registered as Alternative
Investment Fund (AIF) with the Securities and Exchange Board of India (SEBI) and are currently raising
capital from domestic and international institutional investors.

• NIIF Limited manages over USD 4.4 billion of equity capital commitments across its three funds – Master
Fund, Fund of Funds and Strategic Opportunities Fund, each with its distinct investment strategy. 
 FDI INFLOW IN INFRASTRUCTURE

• PE/VC Investments into India high value of US$ 14.45 billion during 2019.

• Construction development sectors and Infrastructure activity sectors received FDI inflows amounting to US$
25.78 billion and US$ 17.22 billion, respectively, between April 2000 and September 2020.

• According to the Department for Promotion of Industry and Internal Trade (DPIIT), construction development
and infrastructure activities sectors received FDI inflow amounting to US$ 25.69 billion and US$ 16.97
billion, respectively, between April 2000-June 2020. 

• The largest deal was done by Abu Dhabi Investment Authority, Public Sector Pension Investment Board and
National Investment and Infrastructure Fund as they made investment worth US$ 1.1 billion in GVK Airport
Holdings Ltd.
 FDI INFLOW IN INFRASTRUCTURE

• An electric highway project is one of the plans on the upcoming Delhi-Mumbai

expressway project.

• The government has been encouraging projects on a hybrid annuity, engineering,

procurement and construction (EPC) and other modes as the present condition of
the Indian contractors has not been comfortable for BOT (build, operate and
transfer) projects.

• The central government has also identified a list of 15-20 projects totaling 3000 km
on BOT and will observe the response on the basis of one or two projects.
 VENTURE CATALYSTS, FORMER CASTROL ASIA HEAD INVEST IN
ROBOTICS STARTUP PEPPERMINT
• Aubotz Labs Pvt. Ltd, which operates industrial robotics startup
Peppermint, has raised seed funding from startup incubator and
accelerator Venture Catalysts and former Castrol Asia head
Naveen Kshatriya.

• The company didn’t disclose the amount it raised. Venture

Catalysts typically invests between $250,000 and $1.5 million in a
startup.

• Peppermint was incubated at IIT-Bombay’s Society for Innovation

and Entrepreneurship and has received a grant from the central
government’s Department of Science and Technology. The
company says its robot, launched in February, has been deployed
for use in the pharmaceuticals, logistics, manufacturing and
hospitality sectors.
 CONCLUSION
• The infrastructure sector has become the biggest focus area for the Government of India. India plans to spend
US$ 1.4 trillion on infrastructure during 2019-23 to have a sustainable development of the country. The
Government has suggested investment of Rs. 5,000,000 crore (US$ 750 billion) for railways infrastructure from
2018-30.

• India and Japan have joined hands for infrastructure development in India's Northeast states and are also
setting up an India-Japan Coordination Forum for Development of Northeast to undertake strategic
infrastructure projects for the region.

• In November 2020, Warburg Pincus-backed logistics real estate firm, ESR India signed an agreement with the
Maharashtra government to invest Rs. 4,310 crore (US$ 578.88 million) to set up 11 industrial and logistics
parks around Mumbai and Pune.