Govt sets Rs 1-trillion infrastructure lending target for DFI

The Centre has set a target of about Rs 1 trillion for government-backed National Bank for Financial Infrastructure and Development (NaBFID) for sanctioning loans to the infrastructure sector in the next financial year.

The government-backed Development Finance Instit­ut­ion (DFI) will start operations in the first quarter of the next financial year, finance ministry officials have infor­m­ed lawmakers. To catalyse investment in the fund-star­v­ed infrastructure sector, the DFI plans to invest in infrast­r­ucture projects in India and outside with a focus towards prioritising systemic risk mitigation and credit enhancement.