The National Investment and Infrastructure Fund Ltd (NIIFL), India’s first infrastructure-specific investment fund, said it would invest Rs 3,036 crore in Navayuga Quazigund Expressway Private Ltd (NQEPL).
The operational tunnel road in Jammu and Kashmir Union territory will be managed by NIIF Master Fund’s proprietary roads platform Athaang Infrastructure, NIIFL said in a statement. The acquisition expands the fund’s road portfolio and diversifies its asset base, the company said.
NQEPL is one of the largest annuity projects awarded by the National Highways Authority of India (NHAI) on a build-operate-transfer basis. This project receives fixed, semi-annual payments from NHAI, providing stable and predictable cash flows.
The Rs 40,000-crore NIIF was set up in December 2015 as an institution for enhancing infrastructure financing by investing in greenfield (new), brownfield (existing) and stalled projects.
Set up as Category II Alternative Investment Fund, the NIIF currently manages three funds with distinct strategies, Master Fund, Fund of Funds, and Strategic Opportunities Fund.
Vinod Giri, managing partner, NIIF Master Fund, said: “We are delighted to add this important asset to our portfolio, which is also the first tunnel road that we have acquired. This acquisition emphasises our focus on identifying fundamentally strong assets that create long-term value.”