New Delhi (NVI): The Government today approved the proposal to set up a new Development Finance Institution (DFI). DFI will also have some tax benefits for a 10-yr-long period, Union Finance Minister Nirmala Sitharaman said.
While briefing the media after the Cabinet meeting, the Finance Minister thanked Prime Minister Narendra Modi for his “gentle nudge to set up the DFI as announced in Budget 2021.”
The DFI bill will be tabled in Parliament in the current budget session and is likely to be named as the National Bank for Financing Infrastructure and Development.
“The cabinet has cleared the setting up of an institutional arrangement which will help raise long-term funds for infrastructure,” Sitharaman said, adding that for 2021-22, the government will infuse Rs 20,000 crore into the DFI, including Rs 5,000 crore to be given immediately.
“We expect the DFI to raise upto Rs 3 lakh crore in the next few years from markets and other sources. The DFI will have certain tax benefits for a 10-year long period,” she said.
-ARK
