The NBFID Will Begin Operations
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The National Bank for Financing Infrastructure and Development (NBFID) plans to begin lending operations with 190-200 large infrastructure projects in the road, rail, and energy sectors.
♦ K V Kamath, the newly appointed Chairman of NBFID, made the announcement. The central government announced the selection of K V Kamath as chairperson of the newly established NBFID.
♦ The NBFID was established with the goal of catalysing investment in India’s fund-strapped infrastructure industry.
♦ There are 193 projects worth more than Rs 1,000 crore in the National Infrastructure Pipeline (NIP).
♦ With a USD 1.5 trillion aim, NIP encompasses major areas such as highways, metro, trains, and energy. It also includes certain social initiatives, such as irrigation projects.
♦ NBFID raises funds through loans or other means in Indian rupees and international currencies. It also raises funds through the issuance or sale of financial instruments such as bonds and debentures.
♦ It can also borrow money from the federal government, the Reserve Bank of India, mutual funds, and scheduled commercial banks, as well as international organisations such as the Asian Development Bank and the World Bank.
♦ NBFID was established as a corporate organisation with a share capital of one lakh crore rupees. It was established with the following goals in mind:
- To lend, seek investment, or invest directly or indirectly in infrastructure projects situated wholly or partially in India.
- To aid in the creation of a market for infrastructure loans, bonds, and derivatives.
- Loans and credit for infrastructure projects are being extended.
- To assume or refinance current loans.
- Obtaining financing for infrastructure projects from both private and institutional investors.
- Organization and facilitation of foreign participation in infrastructure projects.
- To support talks with various government bodies for the resolution of infrastructure finance disputes.
- To provide infrastructure financing consulting services.