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How to make the DFI model work - The Hindu BusinessLine


How to make the DFI model work
Infra woes The long gestation period skews asset-liability flows   -  Bloomberg×
A professional company staffed with personnel with superior project finance and credit appraisal skills is the need of the hour
In her recent Budget speech, Finance Minister Nirmala Sitharaman proposed to revive development financial institution (DFI) model to act as a provider, enabler and catalyst for infrastructure financing.
The government provided ₹20,000 crore to capitalise the DFI to meet its ambitious loan target of ₹5-lakh crore within three years. After the transformation of the erstwhile DFIs Industrial Development Bank of India (IDBI) and Industrial Credit and Investment Corporation of India (ICICI) into universal banks, there was a vacuum in the DFI space, in general, and infrastructure financing, in particular. ....

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Coming, an exclusive funding institution - The Hindu BusinessLine


Coming, an exclusive funding institution
February 01, 2021
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New Development Financial Institution to come up, with lending portfolio of ₹5-lakh crore in three years
Heeding to the calls for a Development Financial Institution (DFI), Finance Minister Nirmala Sitharaman announced the setting up of one to act as a provider, enabler and catalyst for infrastructure financing. The DFI will be capitalised with a funding of ₹20,000 crore, and is expected to have a lending portfolio of ₹5-lakh crore in three years.
This move will be an important step towards mobilising resources and to increase funding for the National Infrastructure Pipeline (NIP).
The concept of DFI is not new to India. The country’s first DFI was operationalised in 1948, with the setting up of the Industrial Finance Corporation of India (IFCI). ....

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