Nirmala Sitharaman to introduce National Bank for Financing Infrastructure and Development Bill in Parliament
The bill seeks to establish the National Bank for Financing Infrastructure and Development to support the development of long term non-recourse infrastructure financing in India.
Union Finance Minister Nirmala Sitharaman. (File image)
Finance Minister Nirmala Sitharaman is expected to introduce the National Bank for Financing Infrastructure and Development Bill, 2021, in Parliament next week, a move expected to give a big push to infra projects as promised in the Budget 2021.
The bill will pave the way for the setting up of a government-owned Development Finance Institution (DFI). Earlier this week, the union cabinet approved a budget proposal for the setting up of DFI, which will have tax benefits to enable fund-raising from investors.
The bill seeks to support the development of long-term non-recourse infrastructure financing in India. It also includes the development of bonds and derivatives markets necessary for infrastructure financing.
Economic Affairs Secretary Tarun Bajaj had told Moneycontrol that the DFI, proposed by Sitharaman in Budget 2021, would be 100 percent owned by the government. “To begin with, the DFI will be 100 percent government owned. Later on, it will get in more stakeholders as per its financing needs,” Bajaj said.
His colleague, Financial Services Secretary Debashish Panda, had said DFI would be named the National Bank for Financing Infrastructure and Development.
The DFI is part of the government’s push to create jobs and boost demand through a nationwide infrastructure push. The plan also includes a capital expenditure target of Rs 5.54 lakh crore for 2021-22, compared with a revised estimate of Rs 4.39 lakh crore for 2020-21.
(with PTI inputs)