Centre to infuse Rs 20,000 cr in Development Finance Institution to boost infrastructure funding

The Centre on Tuesday approved setting up of a Development Finance Institution to pump in funds into infrastructure projects, Finance Minister Nirmala Sithraman said.

The Union Cabinet, at a meeting chaired by Prime Minister Narendra Modi, also proposed to grant Rs 20,000 crore as equity support to the Development Finance Institution (DFI) which is expected to raise Rs 3 lakh crore through markets over the next few years.

The Finance Minister will introduce a Bill in the ongoing session of Parliament to establish the DFI, which was announced in the Union Budget presented last month.

Sitharaman said initially the new institution would be state-owned and the government would gradually reduce its stake to 26 per cent.