September 2, 2026: The National Investment and Infrastructure Fund (NIIF) has secured Rs 19,000 crore from institutional investors for the first close of its second infrastructure fund, giving the state-backed investment platform substantial capital to pursue new opportunities across India’s infrastructure economy.
The fund is targeting Rs 30,000 crore in total commitments. The latest raise also comes with an expected Rs 9,000 crore in co-investment capital, potentially increasing the pool of money available for larger transactions.
The investor base spans government-backed institutions, global pension and sovereign funds, insurers and Indian banks. AustralianSuper, CPP Investments, a subsidiary of the Abu Dhabi Investment Authority, Ontario Teachers’ Pension Plan and Temasek are among the international investors participating in the fund.
Domestic participation includes ICICI Bank, HDFC Bank, Axis Bank, Kotak Life Insurance and HDFC Life Insurance.
The NIIF fund’s mandate points to where infrastructure investment is moving in India. Along with established areas such as energy and transport, NIIF plans to invest in digital infrastructure and take greater exposure to urban infrastructure and electric mobility.
The strategy gives NIIF a broader investment universe at a time when infrastructure spending is increasingly linked to areas such as power transition, data consumption, urbanisation and the electrification of transport.
NIIF’s first infrastructure fund had a corpus of Rs 16,000 crore and deployed capital across renewable energy, power transmission and distribution, battery storage, roads, ports, logistics, airports, data centres and smart metering.
NIIF Raises Rs 19,000 Crore in First Close of Infrastructure Fund II, Targets Rs 30,000 Crore
The second fund will build on that portfolio while seeking opportunities in sectors where India’s infrastructure requirements are expanding.
For The National Investment and Infrastructure Fund, the challenge now shifts from attracting institutional capital to deploying it. The fund has Rs 11,000 crore still to raise to reach its stated target, while the additional co-investment capacity could allow it and its partners to pursue larger assets and platforms.
“With a strong pipeline already in place, we see significant opportunities to deploy capital where NIIF can bring sector expertise, operating capability and execution at scale,” said Vinod Giri, Managing Partner, Infrastructure, NIIF.
NIIF has more than $7 billion in equity capital commitments across infrastructure, private markets, growth equity and climate investments.
The latest fundraise strengthens its position as a long-term capital provider to India’s infrastructure sector, but the more consequential phase will be the deployment of the new corpus and the returns generated from the assets it acquires.
“Infrastructure Fund II reflects the continued confidence of our partners in India’s infrastructure opportunity and in NIIF’s ability to deploy long-term capital with discipline, sector expertise and strong governance,” said Sanjiv Aggarwal, Managing Director and CEO, NIIF.
