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Centre plans to set up Development Finance Institution

Wednesday, 23 Dec 2020
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The Central government is planning to set up a Development Finance Institution (DFI) in the next three to four months with a view to mobilise Rs 111 lakh crore required for funding of the National Infrastructure Pipeline (NIP).

DFI will be a catalyst and fund projects where others are not willing to enter because of the risks involved. The work is in progress and DFI should become a reality soon, may be by the end of FY21 or early FY22.

About 7,000 projects have been identified under NIP with projected investment of a whopping Rs 111 lakh crore during 2020-25.

NIP, a first-of-its-kind initiative to provide world-class infrastructure across the country and improve quality of life for all citizens, will be crucial for attaining the target of becoming a USD five trillion economy by FY25.

 
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