Insta
Funding Rs 102 Lakh Crore National Infrastructure Pipeline: Govt To Introduce Bill To Set Up A New Infra Financing Bank
Swarajya Staff
Jan 30, 2021, 11:09 AM | Updated 11:09 AM IST
Save & read from anywhere!
Bookmark stories for easy access on any device or the Swarajya app.
In a potentially transformative move that could help significantly bridge the funding requirements for the infrastructure projects identified under the ambitious Rs 102 lakh crore (US$1.4 trillion) National Infrastructure Pipeline, the Union government will be set up a new development finance institution (DFI).
The government will introduce the National Bank for Financing Infrastructure and Development Bill, 2021 in the current Budget session.
“To set up a new DFI as a provider, enabler and catalyst for infrastructure financing and as the principal financial institution and development bank for building a supportive ecosystem,” the list for legislative business for the ongoing Parliamentary session stated.
The bill is expected to outline the design of the DFI in terms of its institutional form, ownership, source of funds, nature of financing, and governance structure.
On 23 August 2019, the Union Finance Minister Nirmala Sitharaman, while announcing a series of measures to revive economic growth, had mooted the proposal to establish a new Development Finance Institution (DFI) to address the country’s infrastructure financing needs.
The Union Finance Minister said “In order to improve access to long-term finance, it is proposed to establish an organisation to provide credit enhancement for infrastructure and housing projects, particularly in the context of India now not having a development bank and also for the need for us to have a institutional mechanism. So, this will enhance debt flow toward such projects."
Subsequently, on December 31, 2019, the Government of India announced a five-year Rs 102 lakh crore National Infrastructure Pipeline (NIP), prioritising energy, transport, and urban development. Under the NIP state and central governments expected to bear 78% of the financing,with the rest coming from private investors.
Also Read:
Explained: Why India Needs A New Development Finance Institution
Save & read from anywhere!
Bookmark stories for easy access on any device or the Swarajya app.
Support Swarajya's 50 Ground Reports Project & Sponsor A Story
Every general election Swarajya does a 50 ground reports project.
Aimed only at serious readers and those who appreciate the nuances of political undercurrents, the project provides a sense of India's electoral landscape. As you know, these reports are produced after considerable investment of travel, time and effort on the ground.
This time too we've kicked off the project in style and have covered over 30 constituencies already. If you're someone who appreciates such work and have enjoyed our coverage please consider sponsoring a ground report for just Rs 2999 to Rs 19,999 - it goes a long way in helping us produce more quality reportage.
You can also back this project by becoming a subscriber for as little as Rs 999 - so do click on this links and choose a plan that suits you and back us.
Click below to contribute.