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Govt To Set Up Rs 20,000 Cr Development Finance Institution

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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.

Source: PTI

(The story has been published from a wire feed without modifications to the text. Only the heading has been changed)

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