L&T, Power Grid, REC, PFC among infrastructure stocks in focus as Centre boosts NIIF by ₹30,000 crore

Infrastructure stocks such as Larsen & Toubro (L&T), NCC, KEC International, Kalpataru Projects International, Power Grid Corporation of India, and REC, among others, are expected to be in the spotlight on Tuesday, June 30.

The focus comes after the Union Cabinet approved an additional investment commitment of ₹30,000 crore by the Centre towards new and upcoming funds of the National Investment and Infrastructure Fund (NIIF), marking a significant step to deepen India's investment in infrastructure and other nationally important sectors.

With the Cabinet's decision led by Prime Minister Narendra Modi, the government’s total commitment to NIIF stands at ₹60,000 crore, an official statement said on Monday.

What is NIIF?

NIIF is a government-backed investment platform set up in 2015 to channel long-term capital into India's infrastructure and other strategically important sectors.

Unlike a traditional government spending programme, NIIF operates as an investment fund that brings together money from the Centre and domestic and global investors to finance projects in areas such as roads, ports, airports, power, logistics, renewable energy and urban infrastructure.

With the latest Cabinet approval of an additional ₹30,000 crore, the Centre's total commitment to NIIF has doubled to ₹60,000 crore, giving the fund greater capacity to invest in future projects.

Why infrastructure stocks will be in focus

The announcement is likely to keep infrastructure-related stocks in focus as higher investment commitments are expected to support the funding and execution of large projects over the coming years.

Companies involved in engineering, construction, power transmission and infrastructure financing—such as Larsen & Toubro (L&T), NCC, KEC International, Kalpataru Projects International, Power Grid Corporation of India and REC—could benefit from stronger order opportunities and financing activity as infrastructure investments gather pace.

While the move does not immediately generate business for these companies, investors typically view such policy measures as a positive long-term signal for the infrastructure sector.

Marquee institutional investors list

The fund has attracted capital from several marquee institutional investors, including Abu Dhabi Investment Authority, AustralianSuper, CPP Investments, Temasek, Asian Infrastructure Investment Bank (AIIB), Asian Development Bank (ADB), State Bank of India, HDFC Group, ICICI Bank and Axis Bank, among others.

These investors span diverse geographies, including Australia, Canada, Japan, Singapore, the United Arab Emirates, and the United States, reflecting strong international confidence in India's growth trajectory and NIIF's governance and commercial track record, it said.

NIIF's four operational investment strategies – infrastructure, private markets, growth equity and climate investments in the India-Japan business corridor– have achieved notable investment momentum.

Other key details

NIIF's first infrastructure fund, with a corpus of ₹16,000 crore, is India's largest domestic infrastructure fund and has created platforms across transportation (roads, ports & logistics, and airports), energy (renewables, smart meters and power transmission) and digital infrastructure. ​ Its Private Markets Fund has invested in multiple AIFs managed by home-grown managers, which in turn have invested in areas such as climate, affordable housing, affordable healthcare and venture capital (VC) technologies.

These investments are closely aligned with national priorities such as Gati Shakti, Digital India, Make in India, COP commitments and flagship schemes including FAME and PM E-DRIVE. ​

NIIF also plays a strategic advisory role, assisting central government departments and state entities on new PPP initiatives and investment ideas that can catalyse private sector investments.