Important Funds Introduced by the Government You Should Know of
From time to time, the government introduces new types of funds for the development of public infrastructure, SME industry, and many other areas.
The following are some of the recent and important funds that were set up by the government:
Financial Inclusion Fund (FIF)
The Financial Technology Inclusion Fund (FTIF) and Financial Inclusion Fund (FIF) were established during the year 2007-2008 for a period of 5 years initially. It was the government of India that drafted the guidelines for the funds and its corpus, which was Rs. 500 crores, was shared by the NABARD, the RBI, and the government itself in the ratio of 20:40:40.
FTIF was later subsumed by the FIF, making it just one fund i.e. FIF.
FIF was set up to support financial inclusion and literacy centers and to promote investment in the Green Information and Communication Technology (ICT) solution.
Technology Acquisition and Development Fund (TADF)
TADF was introduced by the Department of Commerce and Industry under the National Manufacturing Policy 2011 to provide financing for the green development projects in the form of custom products, green and energy efficient technologies, etc. across the nation.
TADF is managed by Global Innovation and Technology Alliance (GITA) which offers support to MSMEs through the green manufacturing-incentive scheme, equipment, and technology manufacturing subsidies, etc.
National Investment and Infrastructure Fund (NIIF)
NIIF is India’s own version of sovereign wealth fund which focuses on the core sectors of the country. It received a green signal from the Cabinet on July 29, 2015, and was granted a corpus of Rs. 40,000 crores, with the government’s stake standing at 49% and that of the private sector at 51%.
NIIF has been put under the category “Fund of Funds” by the Securities and Exchange Board of India (SEBI) Regulations and aims at investing in:
- Commercially viable projects including both brownfield and greenfield
- NBFCs and other financial institutions that provide financing to the infrastructure projects
- Debt funding to listed as well as unlisted companies