The Canada Pension Plan Investment Board (CPPIB) will invest up to $600 million in the National Investment and Infrastructure Fund (NIIF) of India.

This development comes at a time when infrastructure investments in India need a considerable push.

CPPIB’s investment will be done through the NIIF Master Fund and with this infusion, CPPIB will become a shareholder in NIIF, company officials said in a statement. The agreement includes a commitment of $150 million in the NIIF Master Fund and co-investment rights of up to $450 million in future opportunities to invest alongside the NIIF Master Fund. Sujoy Bose, Managing Director and Chief Executive Officer of NIIF, said: “CPPIB is a prominent and established investor in India, and their investment demonstrates the alignment of the NIIF Master Fund’s investment strategy with what large international investors seek in the infrastructure sector in India.”

This development follows the $2-billion investment made by AustralianSuper and Ontario Teachers’ Pension Plan in August.

CPPIB joins Abu Dhabi Investment Authority, AustralianSuper, Ontario Teachers’ Pension Plan, Temasek, Axis Bank, HDFC Group, ICICI Bank and Kotak Mahindra Life Insurance as investors in the NIIF Master Fund, alongside the Union government.

With CPPIB’s investment, the NIIF Master Fund now has $2.1 billion in commitments and has achieved its initially targeted fund size.

In addition, the NIIF Master Fund investors have co-investment rights of $3 billion, which will enable the NIIF Master Fund to invest at the scale required for India’s large infrastructure. The government in the last Budget said it was eyeing ₹100-lakh crore investment in the infrastructure sector.

The NIIF Master Fund invests equity capital in core infrastructure sectors in India, with a focus on transportation, energy and urban infrastructure.