In Budget 2021, FM Sitharaman says will set up Rs 20,000 cr DFI to promote infra financing

Budget 2021: Finance Minister Nirmala Sitharaman on Monday said the government will set up a Rs 20,000 crore Development Finance Institution (DFI) with a view to mobilise Rs 111 lakh crore required for funding of the ambitious national infrastructure pipeline.

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Unveiling the Union Budget 2021-22, the Finance Minister said that a professionally managed DFI to be set up to provide, enable and catalyze infrastructure financing.

Also Read: LIVE Budget 2021 - What FM Nirmala Sitharaman said | Full coverage and highlights here

The government proposes Rs 20,000 crore to capitalise this institution and aims to have lending portfolio of at least Rs 5 lakh crore in three years, she said.

In her Budget 2019-20 speech, Finance Minister Nirmala Sitharaman had proposed a study for setting up DFIs for promoting infrastructure funding. About 7,000 projects have been identified under the National Infrastructure Pipeline (NIP) with projected investment of a whopping Rs 111 lakh crore during 2020-25.

NIP, a first-of-its-kind initiative to provide world-class infrastructure across the country and improve the quality of life for all citizens, will be crucial for attaining the target of becoming a USD 5 trillion economy by FY 2025.

The DFI will play a key developmental role apart from the financing role.
 

The story has been taken from a news agency