Centre to introduce DFI Bill in Lok Sabha next week
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
New Delhi: The government will next week introduce the National Bank for Financing Infrastructure and Development (NaBFID) Bill 2021 in Lok Sabha to pave way for setting up a government-owned DFI to fund infra projects.
The Union Cabinet earlier this week had approved a budget proposal of setting up a Development Finance Institution (DFI), which will have tax benefits to enable fundraising from investors. The National Bank for Financing Infrastructure and Development (NaBFID) 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. While listing out the government’s business for next week in the Lower House, Minister of State for Parliamentary Affairs Arjun Ram Meghwal on Friday said The National Bank for Financing Infrastructure and Development (NaBFID) Bill, 2021, will be introduced.
Also the Insurance (Amendment) Bill, 2021, which seeks to raise the FDI in the insurance sector to 74% from the current 49%, will be taken up for discussion. The insurance bill was passed by Rajya Sabha on March 18.