The Parliament on Thursday cleared a bill to constitute National Bank for Financing Infrastructure and Development (NaBFID), which would help to fund infrastructure projects in India. The bill was cleared by voice vote in Rajya Sabha today.

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

The Lok Sabha on March 23 had already cleared the bill, forwarding it to the upper house.

The bill was in line of the Union Finance Minister Nirmala Sitharaman's Budget 2021 announcement to create Development Finance Institution, it will be called National Bank for Financing Infrastructure and Development (NaBFID) and answerable to Parliament.

The bill would allow to establish NaBFID to support the development of long-term non-recourse infrastructure financing in India. It includes development of the bonds and derivatives markets necessary for infrastructure financing. And also, to carry on the business of financing infrastructure and for matters connected therewith or incidental thereto.

The government has allowed five years' tax break to the DFI or NaBFID is given so that more funds flow to it.