The Union Cabinet on Tuesday set up the Development Finance Institution (DFI) to raise funds to invest in the infrastructure sector. The proposed law will give effect to the budget announcement made on 1 February by Finance Minister Nirmala Sitharaman. The government has proposed 20 thousand crore rupees to capitalize on the institute. He said after the cabinet meeting that the cabinet has passed this bill, through which we will have an institute and institutional arrangements, which will help to increase the long-term fund.
Sitharaman further said that 50 percent of the proposed DFI will have non-official directors.
In his Budget 2019-20 speech, Sitharaman proposed a study to establish DFIs to promote infrastructure funding. Nearly 7,000 projects have been identified under the National Infrastructure Pipeline (NIP) during 2020-25, with a proposed investment of Rs 111 lakh crore.
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(Input: PTI)