SIDBI seeks bids from consultants to help set up Rs 20,000 cr NaBFID
Parliament in March cleared National Bank for Financing Infrastructure and Development (NaBFID) Bill 2021 to support the development of long-term non-recourse infrastructure financing in India
PTI | June 6, 2021 | Updated 17:42 IST
The government expects the DFI to leverage this fund to raise up to Rs 3 lakh crore in the next few years
SIDBI on behalf of the government has floated Request for Proposal (RFP) inviting bids from consultants to help set up RS 20,000 crore DFI called National Bank for Financing Infrastructure and Development (NaBFID) to catalyse investment in fund-starved infrastructure sector.
A Bank for Infra
The National Bank for Financing Infrastructure and Development promises to address the capital needs of the cash-starved infrastructure sector, but execution remains key
Illustration by Raj Verma
On March 25, the last day of the Covid-19 curtailed Budget Session of Parliament, the government passed a Bill that turned the clock 30 years back to India s pre-economic-liberalisation era in terms of infrastructure financing.
The proposed law that the Rajya Sabha cleared that day (the Lok Sabha had passed it two days earlier) was the National Bank for Financing Infrastructure and Development (NBFID) Bill, 2021. It called for the establishment of a development finance institution (DFI), a tried and tested concept that had led to the birth of institutions, including IFCI (Industrial Finance Corporation of India), IDBI (Industrial Development Bank of India), SIDBI (Small Industries Development Bank of India), NABARD (National Bank for Agriculture and Rural Development),
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India hopes that more money will bridge the infrastructure gap but many believe that may not be enough
India hopes that more money will bridge the infrastructure gap but many believe that may not be enough
Prabhjote GillMar 17, 2021, 15:51 IST
Workers in action at the Avinashi road flyover construction project in Coimbatore, Tamil NaduBCCL
India is on the threshold of setting up a new national bank that will raise money to fund long-term infrastructure projects, which typically have high risk and low payout.
The bank plans to overcome the issues of funding projects by allowing pension funds, insurance funds, sovereign funds and foreign investors to provide capital.
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India sets up a new bank for big infrastructure projects as it aims to raise $41 billion in a few years
India sets up a new bank for big infrastructure projects as it aims to raise $41 billion in a few years
Prabhjote GillMar 16, 2021, 16:39 IST
India s Finance Minister Nirmala SitharamanBCCL
The Indian government has given its stamp of approval to set up a new national bank that will fund the country’s long term infrastructure and development projects.
According to
Nirmala Sitharaman, India’s finance minister, the government is hoping that the
Development Fund Institution (DFI) will raise ₹3 lakh crore over the next few years.India’s Finance Minister Nirmala Sitharaman announced that the Indian government has approved the setting up of a Development Fund Institution (DFI). The new national bank will use the markets to raise capital and put those funds into long-term projects.