National Investment and Infrastructure Fund Ltd. (DFC-2021-NATIONALINVEST)

Regions
  • South Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • India
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • US International Development Finance Corporation (DFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Active
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
C
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Borrower
National Investment and Infrastructure Fund Ltd.
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Energy
  • Finance
  • Infrastructure
  • Transport
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Equity
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 0.72 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported 56.19
Converted using 2022-05-26 exchange rate.
Project Cost (USD)
$ 36.05 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported 2800
Converted using 2022-05-26 exchange rate.
Bank Documents
Primary Source

Original disclosure @ DFC website

Updated in EWS May 26, 2022

Contribute Information
Can you contribute information about this project?
Contact the EWS Team

Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to DFC, the proposed fund is expected to have a positive developmental impact in India
by making investments in infrastructure projects which will have outsizedimpacts for the overall population of the lower middle-income country.Despite being one of the fastest growing countries in the previous threedecades and the fifth largest nominal GDP in the world, India suffers from a significant infrastructure deficit, holding back further sustainable
growth for the country. India ranks 70th out of 144 countries inappropriate quality of infrastructure according to the World Economic Forum’s Global Competitiveness index, and 18th within the G20. TheFund focuses on investing in infrastructure, including energy, transportation, and urban infrastructure, that is essential and critical forthe long-term sustainable growth of the Indian economy. These infrastructure investments expect to contribute to further development inIndia by reducing production, transportation and communication costs and fostering downstream positive externalities directly and indirectly
related to the projects supported. Finally, the project expects to hav edemonstration effects through a private sector approach to an industry that has traditionally been majority controlled by the Indian government.

The project involves an equity investment into a fund that will invest in Indian infrastructure platforms that will in turn invest in operational assets, assets under construction and some greenfield projects. The project also involves an equity investment in a fund manager that manages several investment funds.

The capitalization of a fund is screened as a Category D activity for thepurposes of environmental and social assessment. Based on DFC’s due diligence, the Fund’s downstream investments are anticipated to posemedium to high environmental and social risks.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

Up to $54.91 million Indian National Rupees (“INR”) equivalent of equity in the Fund.
Up to $1.28 million INR equivalent equity investment in the Fund Manager

Target Fund Size: $2,800 million INR equivalent


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

ACCESS TO INFORMATION

Unlike many other development finance institutions, DFC does not currently have an access to information policy.

Under the United States Freedom of Information Act (FOIA), DFC is obliged to respond to reasonably formulated requests for Agency records. However, DFC may apply exemptions from release to certain types of information and may charge fees in responding to requests. DFC has a designated FOIA officer who is trained in how to respond to requests and implement the law. You can learn more about filing a FOIA request at: https://www.dfc.gov/foia

ACCOUNTABILITY MECHANISM OF THE UNITED STATES INTERNATIONAL DEVELOPMENT FINANCE CORPORATION (DFC)

The Office of Accountability is an independent office that addresses complaints about environmental or social issues related to DFC-supported projects. The office provides communities an opportunity to have concerns independently reviewed and addressed. If you submit a complaint to the Office of Accountability, it may assist you by either seeking to address your problems by facilitating a problem solving dialogue between you and those implementing the project and/or investigating whether the DFC complied with its policies to prevent environmental, social, human rights, and labor harms.

You can find more information about the Office of Accountability at: https://www.dfc.gov/who-we-are/office-accountability

How it works

How it works