Finance Minster Nirmala Sitharaman on March 22 introduced the National Bank for Financing Infrastructure and Development (NaBFID) Bill 2021 in the Lok Sabha to pave way for setting up of a government-owned DFI to fund infra projects.
Also read: Parliament proceedings updates, March 22, 2021
The Union Cabinet had last week approved a budget proposal of setting up a Development Finance Institution (DFI), which will have tax benefits to enable fund raising from investors.
The National Bank for Financing Infrastructure and Development will be set up with a corpus of ₹20,000 crore and the government will give an initial grant of ₹5,000 crore.
The government expects the DFI to leverage this fund to raise up to ₹3 lakh crore in the next few years.
