Repurpose Existing Dev Finance Arms
March 18, 2021, 10:55 AM IST
Quick takes, analyses and macro-level views on all contemporary economic, financial and political events.
The Cabinet nod for an infrastructure-focused development finance institution (DFI) is noteworthy, given lacklustre credit growth in the backdrop of stepped up capital expenditure in the budget. But it would surely make better sense to repurpose an operational DFI, such as IFCI or IIFL, to boost project funding, with special focus on project vetting. Reports say that the National Bank for Financing Infrastructure and Development (NaBFID) is to be set up with a corpus of Rs 20,000 crore and an initial grant of Rs 5,000 crore from the Centre.