Finance Minister Nirmala Sitharaman on Monday said the government will set up a Rs 20,000 crore Development Finance Institution (DFI) with a view to mobilise Rs 111 lakh crore required for funding of the ambitious national infrastructure pipeline.
Unveiling the Union Budget 2021-22, the Finance Minister said that a professionally managed DFI to be set up to provide, enable and catalyze infrastructure financing.
The government proposes Rs 20,000 crore to capitalise this institution and aims to have a lending portfolio of at least Rs 5 lakh crore in three years, she said.
In her Budget 2019-20 speech, Finance Minister Nirmala Sitharaman had proposed a study for setting up DFIs for promoting infrastructure funding. About 7,000 projects have been identified under the National Infrastructure Pipeline (NIP) with projected investment of a whopping Rs 111 lakh crore during 2020-25.
NIP, a first-of-its-kind initiative to provide world-class infrastructure across the country and improve the quality of life for all citizens, will be crucial for attaining the target of becoming a USD 5 trillion economy by FY 2025.
The DFI will play a key developmental role apart from the financing role.
(The story has been published from a wire feed without modifications to the text. Only the heading has been changed)