The government will infuse Rs 2,000 crore as equity in a debt platform of the National Investment and Infrastructure Fund (NIIF) in the current financial year. This is part of the Rs 6,000 crore announced by Finance Minister Nirmala Sitharaman under a stimulus package earlier this month.
However, given a resource crunch facing the government, the amount approved by the Union Cabinet on Wednesday – which is a third of the total funds committed – could be infused this year only if there is an absorptive capacity to utilise that. The remaining funds will be released in 2021-22.
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