Govt to introduce DFI Bill in Lok Sabha next week

The union cabinet earlier this week had approved a budget proposal of setting up a Development Finance Institution (DFI), which will have tax benefits to enable fund raising from investors.

New Delhi: The government will next week introduce in the National Bank for Financing Infrastructure and Development (NaBFID) Bill 2021 in Lok Sabha to pave way for setting up of a government-owned DFI to fund infra projects. The union cabinet earlier this week had approved a budget proposal of setting up a Development Finance Institution (DFI), which will have tax benefits to enable fund raising from investors.

The National Bank for Financing Infrastructure and Development (NaBFID) will be set up with a corpus of Rs 20,000 crore and the government will give an initial grant of Rs 5,000 crore. The government expects the DFI to leverage this fund to raise up to Rs 3 lakh crore in the next few years.

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While listing out government’s business for next week in the Lower House, Minister of State for Parliamentary Affairs Arjun Ram Meghwal on Friday said The National Bank for Financing Infrastructure and Development (NaBFID) Bill, 2021, will be introduced.

Also the Insurance (Amendment) Bill, 2021, that seeks to raise the FDI in insurance sector to 74 per cent from the current 49 per cent, will be taken up for discussion. The insurance bill was passed by Rajya Sabha on Thursday.