Finance Ministry Appoints SBI Chairman C S Setty and Uday Kotak to NIIF Trustee Governing Council
NEW DELHI: The Finance Ministry made a significant announcement on Tuesday by appointing two new members to the governing council of the National Investment and Infrastructure Fund Trustee Ltd (NIIFTL). This move aims to provide strategic guidance on various matters, including the investment of the corpus of NIIF. The newly appointed members are SBI Chairman C S Setty, who takes over from his predecessor Dinesh Khara, and veteran banker and Kotak Mahindra Bank director Uday Kotak, who replaces T V Mohandas Pai.
The nomination of Setty and Kotak has been approved by the Finance Minister Nirmala Sitharaman, who also happens to be the chairperson of the Governing Council. This decision was communicated through a circular issued by the Department of Economic Affairs under the Ministry of Finance. The existing members of the Council include Secretary Department of Economic Affairs Ajay Seth, Secretary Department of Financial Services M Nagaraju, and Chairman of DSP Group Hemendra Kothari.
Established in December 2015, the Rs 40,000-crore NIIF serves as a quasi-sovereign wealth fund, focusing on enhancing infrastructure financing by investing in greenfield (new), brownfield (existing), and stalled projects. In a significant development back in November 2020, the Union Cabinet approved the proposal for an equity infusion of Rs 6,000 crore by the government in NIIF Debt Platform sponsored by the National Investment and Infrastructure Fund (NIIF), consisting of Aseem Infrastructure Finance Ltd (AIFL) and NIIF Infrastructure Finance Ltd (NIIF-IFL).
Expert Commentary on the Appointments
As these new appointments come into effect, experts in the finance and banking sectors have expressed their views on the potential impact of Setty and Kotak joining the NIIF Trustee Governing Council. Their wealth of experience and expertise is expected to bring a fresh perspective and contribute significantly to the strategic decision-making process within the council.
Future Outlook for NIIF and Infrastructure Financing
With the addition of Setty and Kotak to the governing council, the NIIF is poised to enter a new phase of growth and development. The ongoing focus on infrastructure financing, especially in greenfield and brownfield projects, is crucial for the economic development of the country. The strategic guidance provided by the council will play a pivotal role in shaping the future direction of infrastructure investments in India.
Public Reaction to the Appointments
The public response to the appointment of C S Setty and Uday Kotak to the NIIF Trustee Governing Council has been largely positive, with many stakeholders expressing confidence in their ability to steer the fund towards greater success. As two prominent figures in the banking industry, their appointment is seen as a strategic move to leverage their expertise for the benefit of NIIF and the overall infrastructure sector.
Overall, the recent developments within the NIIF Trustee Governing Council signal a new chapter in the fund’s journey towards promoting sustainable infrastructure development in India. With a strong leadership team in place, the future looks promising for NIIF and its contribution to the nation’s infrastructure financing landscape.
