The National Investment and Infrastructure Fund (NIIF) on Thursday announced the signing of a memorandum of understanding with the Japan Bank for International Cooperation (JBIC) to strengthen Japanese investment in India.

The Memorandum of Understanding (MoU) outlines the framework for the partnership between NIIF and JBIC, which is considering the establishment of a bilateral India-Japan Fund (IJF).

NIIF stated that JBIC and the central government will invest in the India-Japan Fund, which will make equity investments in environmental protection and low-carbon emission strategies.

It added that the IJF will also strengthen cooperation between the two countries by investing in strategic partnerships between Japanese and Indian companies and promoting business cooperation across multiple sectors in India.

In addition, it said that JBIC will consider providing debt financing to investment companies of NIIF-managed funds under its Global Action for Reconciling Economic Growth and Environmental Protection (GREEN) initiative.

The Rs 40,000 crore NIIF is a quasi-sovereign wealth fund established in December 2015 to enhance infrastructure financing by investing in greenfield (new), brownfield (existing) and stalled projects.