Union Cabinet sanctions bill to launch DFI with Rs 20K crore initial asset

NEW DELHI: The Union Cabinet sanctioned a bill on Tuesday, March 16 to establish Development Finance Institution (DFI) to generate funds for investment in infrastructure. The government has offered Rs 20,000 crore to capitalise the institution. The bill will be presented in the Parliament during the Budget Session.

In her Budget 2019-20 speech, Nirmala Sitharaman, Minister of Finance, Government of India, had proposed a study for setting up DFIs for promoting infrastructure funding. After the Cabinet meeting, Sitharaman said that the Cabinet has approved the bill, through which the government expects the institution to raise long term funds for infrastructure development in the country. She also informed the reporters that the proposed DFI will have fifty per cent non-official directors.