NaBFID targets ₹1-tr infra funding in next fiscal

The Centre has set a target of ₹1 trillion for the government-backed National Bank for Financial Infrastructure and Development (NaBFID) for sanctioning loans to the infrastructure sector in the next financial year. The Development Finance Institution (DFI), which will provide funding to projects in the public as well as the private sector, will start operations in the first quarter of the next financial year. To catalyze investment in the fund-starved infrastructure sector, the DFI plans to invest in infrastructure projects in India and outside with a focus on prioritizing systemic risk mitigation and credit enhancement. An action plan is being prepared on making the newly set up DFI functional to achieve the ₹1-trillion target.

The government has infused ₹20,000 crore as equity in the DFI, and an additional ₹5,000 crore has been given as grants to NaBFID. The Centre had sought an additional outgo of ₹13,050 crore for transferring ₹20,000 crore to the DFI in the supplementary demand for grants. Most of this demand was met through savings or allocation of unspent funds of other departments.