Big INFRA boost of Rs 20,000 crore! Modi government to constitute National Bank for Financing Infrastructure and Development—All DETAILS here

In a major infra boost, the Modi government will create a national bank to push infrastructure projects across India. The aim behind constituting this national bank is to give impetus to infrastructure development goals. The initial fund size has been proposed as Rs 20,000 crore.  

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This comes after Finance Minister Nirmala Sitharaman, during the Union Budget, had mentioned that the government will be setting up a national bank to fund infrastructure and developmental activities 

The National Bank for Financing Infrastructure and Development to be constituted with a fund of Rs 20,000 crore will give a new impetus to infrastructure development goals for building a new and prosperous India. #InfraForGrowth pic.twitter.com/RdtGjeFyxP

— NSitharamanOffice (@nsitharamanoffc) June 8, 2021

"The National Bank for Financing Infrastructure and Development to be constituted with a fund of Rs 20,000 crore will give a new impetus to infrastructure development goals for building a new and prosperous India," tweeted Nirmala Sitharaman office.  

How will it Work? 
This bank will provide long-term support to infrastructure projects pan India. Under this proposal, Developmemt Finance Institution will provide long-term capital support to infrastructure projects. As per the laid-out plan, Rs 20,000 crore will be infused into then institution with immediate injection of Rs 5,000 crore. Also, DFI will have leading portfolios of over Rs 5 lakh crore n 3 years, giving major boost to infra. 

"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. Following this, Union Cabinet has cleared the setting up of a Development Finance Institution (DFI), in acknowledgement of the realisation that both development and financial objectives will matter for setting up a DFI," Sitharaman had told new agency ANI in March, while paving the way for DFI.