Union Cabinet clears setting up of Development Finance Institution: Nirmala Sitharaman
Union Cabinet has cleared the setting up of a Development Finance Institution (DFI) for financing long term infrastructure and development projects of the country, said Finance Minister Nirmala Sitharaman in a press briefing, Tuesday.
During Budget 2021, it was mentioned that a national bank will be set up to fund infrastructure and developmental activities.
Past attempts to have alternative investment funds were taken up, but for various reasons, we ended up with no bank which could take up long-term risk (which is very high) and fund development, the FM added.
She said capital infusion will be of about Rs 20,000 crore this year; initial grant will be Rs 5,000 crore, additional increments of grant will be made within limit of Rs 5,000 crore.
