National Bank will be formed to fund big infra projects, know how will work

Infrastructure Finance Minister Nirmala Sitharaman today announced the establishment of a National Bank to give relief to the infra sector and provide funding to accelerate projects. This Development Finance Institution (DFI) will fund large infrastructure projects in the country, so that infrastructure can be built in the country at a fast pace.

The bank will provide affordable and long-term loans to the infra sector. In addition, restructuring of infra projects and closure of the project will also be the responsibility of DFI.

Finance Minister Nirmala Sitharaman said that the Union Cabinet has approved the DFI for the infra sector. For this, there is a plan to raise Rs 3 lakh crore from the market. The central government will deposit Rs 20,000 crore as paid up capital in DFI. The remaining amount will be raised from the market.

The Finance Minister said that DFI would have a professional board. Also DFI will get tax exemption for 10 years. The Finance Minister said that the formation of DFI will speed up development, as well as help the government in achieving its financial objectives.

Nirmala Sitaraman said- Earlier, no bank was willing to take long term risk for infra projects. But we announced it in Budget 2021 and now approved its formation.

Nirmala Sitaraman said, the government is considering releasing some securities to DFI, which will reduce the cost of its funds and will help DFI to raise funds from various sources.

Also, it will also benefit the bond market. Nirmala Sitharaman said that even after the formation of National Bank for Infra Sector and DFI, the government will protect the interests of PSU Bank.

Finance Minister Nirmala Sitharaman today announced the setting up of a National Bank to accelerate infrastructure projects and provide relief to the infra sector and provide funding to them. This Development Finance Institution (DFI) will fund large infrastructure projects in the country, so that infrastructure can be built in the country at a fast pace.

The bank will provide affordable and long-term loans to the infra sector. In addition, restructuring of infra projects and closure of the project will also be the responsibility of DFI.

Finance Minister Nirmala Sitharaman said that the Union Cabinet has approved the DFI for the infra sector. For this, there is a plan to raise Rs 3 lakh crore from the market. The central government will deposit Rs 20,000 crore as paid up capital in DFI. The remaining amount will be raised from the market.

The Finance Minister said that DFI would have a professional board. Also DFI will get tax exemption for 10 years. The Finance Minister said that the formation of DFI will speed up development, as well as help the government in achieving its financial objectives.

Nirmala Sitaraman said- Earlier, no bank was willing to take long term risk for infra projects. But we announced it in Budget 2021 and now approved its formation.

Nirmala Sitaraman said, the government is considering issuing certain securities to DFI, which will reduce the cost of its funds and will help DFI to raise funds from different sources.

Also, it will also benefit the bond market. Nirmala Sitharaman said that even after the formation of National Bank for Infra Sector and DFI, the government will protect the interests of PSU Bank.

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