Overview
- The proposed fund targets a managed corpus of $1.3–$2.6 trillion by 2047, positioning it alongside the scale of leading sovereign investors.
- Financing channels outlined include initial budget seed money, asset monetisation proceeds, partial transfers of government equity in select PSUs, and thematic bond issuance, with a possible calibrated use of a small share of FX reserves for future overseas acquisitions.
- CII calls for a dedicated IDSF Act to set the mandate, capital sources, withdrawal caps, disclosure norms and independent audits, with majority state ownership under a professional board and separate investment committees.
- The developmental arm would provide patient equity and blended finance for domestic priorities such as infrastructure, clean energy and urban services, with CII suggesting NIIF could be evolved into this arm to leverage its governance and investor network.
- The strategic arm would acquire overseas energy assets, critical minerals, frontier technologies and key logistics infrastructure, with CII emphasizing this is about better capital structuring rather than more borrowing.