The National Investment and Infrastructure Fund (NIIF) and the Japan Bank for International Cooperation (JBIC) jointly launched the India-Japan Fund (IJF) on October 4.
The IJF, a $600 million fund focused on climate and environment projects, has the JBIC and the Government of India (GoI) as its anchor investors. JBIC will contribute 51% of the target corpus, while the Indian government will fund the rest.
NIIF will manage its first bilateral fund, and a subsidiary of JBIC, JBIC IG, will help support it by promoting Japanese investments in India.
According to a release by the Ministry of Finance, the joint initiative is focused on “increasing investments in environmental sustainability and low-carbon emission strategies”. The statement read that the fund “aims to play the role of being a ‘partner of choice’ to further enhance Japanese investments into India”.
The Ministry of Finance added that the setting up the IJF is a key milestone in the strategic and economic partnership between Japan and India.
NIIF is a sovereign wealth fund launched in 2015 to provide an investment platform for international and Indian investors. It said in a statement that the India-Japan Fund will target investment in sustainable projects in areas such as renewable energy, e-mobility and waste management.