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The finance minister, in the Budget speech, had promised that the new DFI would be professionally managed. This was interpreted by most observers to indicate it would have a large, preferably a controlling, share for the private sector and the management would be selected accordingly. However, it now transpires that the state-controlled India Infrastructure Finance Company (IIFCL) will serve as the seed for the new DFI. In this context, our lead editorialnotes that a bail-out of IIFCL and a renaming, alongside a line of credit that will probably allow the new institution to repeat the mistakes of the old. It is hard to see how and why any private-sector pool of long-term capital would want to go into business with such an institution. ....