UPSC Prelims Practice Questions — Cabinet approves additional investment commitment of Rs. 30,000 crore in National Investment and Infrastructure Fund (NIIF) to accelerate infrastructure investment and catalyse institutional capital into India

Q1. Within the fund architecture of the National Investment and Infrastructure Fund (NIIF), which one of the following funds is mandated to invest primarily in operating assets in core infrastructure sectors such as roads, ports and airports?

  • A. Master Fund
  • B. Strategic Opportunities Fund
  • C. Fund of Funds (Private Markets Fund)
  • D. India-Japan Fund

Q2. With reference to the funds managed by NIIF, consider the following: 1. The Master Fund invests primarily in operating assets in core infrastructure such as roads, ports and airports. 2. The Strategic Opportunities Fund provides growth equity and long-term capital to strategic and growth-oriented sectors to build domestic leaders. 3. The Fund of Funds itself builds and operates greenfield highway projects. 4. NIIF's funds are set up as Category II Alternative Investment Funds registered with SEBI. Which of the above is/are correctly identified?

  1. The Master Fund invests primarily in operating assets in core infrastructure such as roads, ports and airports.
  2. The Strategic Opportunities Fund provides growth equity and long-term capital to strategic and growth-oriented sectors to build domestic leaders.
  3. The Fund of Funds itself builds and operates greenfield highway projects.
  4. NIIF's funds are set up as Category II Alternative Investment Funds registered with SEBI.
  • A. 1 and 3
  • B. 2 and 4
  • C. 1, 2 and 4
  • D. 3 only

Q3. The National Investment and Infrastructure Fund (NIIF) is set up and overseen under which one of the following Union Ministries?

  • A. Ministry of Finance
  • B. Ministry of Commerce and Industry
  • C. Ministry of Corporate Affairs
  • D. Ministry of Statistics and Programme Implementation

Q4. With reference to the governance and institutional structure of NIIF, consider the following statements: 1. The Governing Council of NIIF is chaired by the Union Finance Minister. 2. NIIF Limited (NIIFL) is the investment management company for NIIF's funds. 3. The Government of India's contribution in each NIIF AIF entity is maintained at 49% of the corpus. 4. NIIF's funds are registered with and regulated by the Reserve Bank of India as Category II Alternative Investment Funds. Which of the above is/are NOT correct?

  1. The Governing Council of NIIF is chaired by the Union Finance Minister.
  2. NIIF Limited (NIIFL) is the investment management company for NIIF's funds.
  3. The Government of India's contribution in each NIIF AIF entity is maintained at 49% of the corpus.
  4. NIIF's funds are registered with and regulated by the Reserve Bank of India as Category II Alternative Investment Funds.
  • A. 1 and 3
  • B. 2 only
  • C. 3 and 4
  • D. 4 only

Q5. The funds of NIIF, including the proposed second infrastructure fund to be set up using the additional Rs. 30,000 crore commitment, are professionally managed by which one of the following entities?

  • A. NIIF Limited (NIIFL)
  • B. National Bank for Financing Infrastructure and Development (NaBFID)
  • C. India Infrastructure Finance Company Limited (IIFCL)
  • D. Small Industries Development Bank of India (SIDBI)

Q6. The additional Rs. 30,000 crore commitment is earmarked for NIIF's second infrastructure-focused fund, described as the successor to NIIF's first flagship fund. Which one of the following is that first flagship fund?

  • A. Master Fund
  • B. Strategic Opportunities Fund
  • C. Fund of Funds (Private Markets Fund)
  • D. India-Japan Fund

Q7. In NIIF's sovereign-anchored model, the Government of India's anchor contribution in each Alternative Investment Fund entity is fixed and maintained at exactly what proportion of the total corpus?

  • A. 49%
  • B. 51%
  • C. 26%
  • D. 74%

Q8. Consider the following statements distinguishing NIIF from a Development Financial Institution such as NaBFID: 1. NIIF raises the bulk of its capital from global and domestic institutional investors, whereas NaBFID is a Development Financial Institution that lends to and invests in infrastructure projects. 2. NIIF's funds are registered as Alternative Investment Funds with SEBI, whereas NaBFID is regulated by the RBI as an All-India Financial Institution. 3. In NIIF the Government of India holds 49% in each fund entity, whereas in NaBFID the entire shareholding must be held by the Central Government alone. Which of the statements given above is/are correct?

  1. NIIF raises the bulk of its capital from global and domestic institutional investors, whereas NaBFID is a Development Financial Institution that lends to and invests in infrastructure projects.
  2. NIIF's funds are registered as Alternative Investment Funds with SEBI, whereas NaBFID is regulated by the RBI as an All-India Financial Institution.
  3. In NIIF the Government of India holds 49% in each fund entity, whereas in NaBFID the entire shareholding must be held by the Central Government alone.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q9. With reference to India's infrastructure-related institutions and instruments, consider the following pairings: 1. NaBFID — a Development Financial Institution regulated by the Reserve Bank of India. 2. IIFCL — a wholly-owned Government of India company providing long-term finance to infrastructure projects. 3. InvIT — a SEBI-regulated trust that pools investor money to hold infrastructure assets. 4. NIIF — a wholly Government-owned statutory Development Financial Institution whose primary function is lending to infrastructure projects. Which of the above is/are NOT correctly matched?

  1. NaBFID — a Development Financial Institution regulated by the Reserve Bank of India.
  2. IIFCL — a wholly-owned Government of India company providing long-term finance to infrastructure projects.
  3. InvIT — a SEBI-regulated trust that pools investor money to hold infrastructure assets.
  4. NIIF — a wholly Government-owned statutory Development Financial Institution whose primary function is lending to infrastructure projects.
  • A. 1 and 3
  • B. 2 only
  • C. 3 and 4
  • D. 4 only

Q10. According to the Government, NIIF-managed funds (across the Master Fund, Fund of Funds and Strategic Opportunities Fund) have together invested in how many platform entities spanning ports & logistics, renewable energy, roads, digital infrastructure, healthcare and manufacturing?

  • A. 16
  • B. 8
  • C. 12
  • D. 24

Q11. With reference to the establishment of NIIF, consider the following statements: 1. NIIF was set up in 2015 by the Government of India. 2. The trustee company NIIFTL and the investment manager NIIFL were both incorporated in 2015. 3. NIIF's funds are constituted as Category II Alternative Investment Funds. 4. NIIF was established in 2015 as a department within the Reserve Bank of India. Which of the above is/are correctly identified?

  1. NIIF was set up in 2015 by the Government of India.
  2. The trustee company NIIFTL and the investment manager NIIFL were both incorporated in 2015.
  3. NIIF's funds are constituted as Category II Alternative Investment Funds.
  4. NIIF was established in 2015 as a department within the Reserve Bank of India.
  • A. 1, 2 and 3
  • B. 1 and 4
  • C. 2, 3 and 4
  • D. 1, 3 and 4

Q12. Among the emerging areas targeted by the additional Rs. 30,000 crore NIIF commitment, the term 'e-mobility' most directly refers to which one of the following?

  • A. Electric vehicles and their associated charging and transport ecosystem
  • B. High-speed broadband and internet connectivity infrastructure
  • C. Mobile telecommunication spectrum and 5G networks
  • D. Inter-state movement and resettlement of migrant labour