Chennai: Tamil Nadu plans to raise $1 billion through the Alternative Investment Fund of the Tamil Nadu Infrastructure Fund Management Corporation Ltd (TNIFMC), a senior government official said.

The TNIFMC is an asset management company set up by Tamil Nadu Infrastructure Development Board.

The Alternative Investment Fund is expected to be launched in the next six months, said Principal Secretary (Planning and Development) S. Krishnan.

He was speaking at a conference `TN Infra: Vison 2023′ organised by the Confederation of Indian Industry (CII) here on Monday.

Krishnan said TNIFMC will be an independent and professional board-run company.

Speaking to reporters on the sidelines he said $1 billion was an indicative figure and could go up.

The TNIFMC will roll out and manage new infrastructure finance vehicles (IFV)-the Infrastructure Debt Fund, Alternative Investment Fund and Infrastructure Investment Trust, as per guidelines of market regulator, the Securities and Exchange Board of India.

These funds would be used to lend to/invest in public projects, PPPs (public-private-partnership projects) and private projects, the government had said earlier.

The potential investor groups identified for IFVs are sovereign wealth funds, banks and financial institutions, multilateral/bilateral institutions, pension funds, insurance funds, impact funds, endowments/foundations, family trusts, foreign portfolio investors and others.

(IANS)