NIIF in talks to raise $244 million for infrastructure

India’s National Investment and Infrastructure Fund (NIIF) is in talks to raise at least 20 billion rupees ($244 million) for an infrastructure investment fund, according to people familiar with the matter.

The vehicle will include some assets from Athaang Infrastructure, which operates toll roads, according to one of the people, who declined to be identified because the information is private. Another person said the investment would be a private placement and that the fundraising would take place by September.

NIIF is India’s first major attempt to develop a home soil capital raising structure, to address the shortfall in infrastructure spending. According to its website, investors include the Abu Dhabi Investment Authority and Singapore’s Temasek Holdings Pte.

Infrastructure investment funds, commonly known as InvIT, are similar to mutual funds and allow the pooling of assets to fund projects and can help offset investment shortfalls.

A World Bank report last year estimated that the country needs to spend $840 billion over the next 15 years on urban infrastructure.

NIIF did not respond to bloombergEmails and messages requesting feedback. Athaang also did not respond to an emailed request.