India and the UK announced the launch of an Early Market Engagement for the joint UK-India Fund, namely a Green Growth Equity Fund, which aims to leverage private sector investment from the City of London to invest in green infrastructure projects in India.
Both governments reaffirmed their commitment to anchor invest upto £120 million each (i.e. totally £240 million) in the joint fund which will be established under the NIIF framework.
The fund aims to raise around £500 million, with the potential to unlock much more in future. This was announced at the bilateral meeting between Finance Minister, Arun Jaitley and Rt. Hon. Philip Hammond, MP, Chancellor of the Exchequer, Government of UK in Delhi on Tuesday.
The two Finance Ministers announced that initial investments will focus on India’s rapidly growing green energy and renewable market, and that a Fund Manager is expected to be selected in the next few months. Progress will be accelerated through early market engagement via the publication of a blueprint, with the aim to identify additional and complementary sectors for fund investments.