Budget 2021: the government will set up a DFI of Rs 20,000 cr to promote the financing of infra
Finance Minister Nirmala Sitharaman said on Monday that the government would set up a development finance institution (DFI) of Rs 20,000 crore to mobilize Rs 111 lakh crore required for the financing of the ambitious pipeline of national infrastructure.
Unveiling the Union’s 2021-2022 budget, the finance minister said that a professionally managed DFI should be put in place to provide, enable and catalyze infrastructure finance.
The government is offering Rs 20,000 crore to capitalize this institution and aims to have a loan portfolio of at least Rs 5 lakh crore in three years, she said.
In her speech on the 2019-20 budget, the Minister of Finance Nirmala Sitharaman proposed a study for the establishment of DFI to promote the financing of infrastructure. Around 7,000 projects have been identified under the National Infrastructure Pipeline (NIP) with a projected investment of a whopping Rs 111 lakh crore over the period 2020-25.
NIP, a one-of-a-kind initiative to provide world-class infrastructure across the country and improve the quality of life for all citizens, will be crucial to achieving the goal of becoming a $ 5,000 billion economy. ‘by fiscal year 2025.
DFI will play a key development role outside of its funding role.
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