Govt introduces Development Finance Institution Bill in Lok Sabha

As per the bill, DFI will be set up with a corpus of Rs 20,000 crore and the government will give an initial grant of Rs 5,000 crore. The DFI will fund infrastructure projects across the country.

New Delhi: Finance Minster Nirmala Sitharaman on Monday introduced the National Bank for Financing Infrastructure and Development (NaBFID) Bill 2021 in the Lok Sabha to pave way for setting up of a government-owned DFI to fund infra projects.

The Union Cabinet had last week approved a budget proposal of setting up a Development Finance Institution (DFI), which will have tax benefits to enable fund raising from investors.

The National Bank for Financing Infrastructure and Development will be set up with a corpus of Rs 20,000 crore and the government will give an initial grant of Rs 5,000 crore.

The government expects the DFI to leverage this fund to raise up to Rs 3 lakh crore in the next few years.

(PTI)