Minister advises NaBFID to introduce structured partial credit enhancement facility
Finance Minister Nirmala Sitharaman has reviewed performance of the National Bank for Financing Infrastructure and Development (NaBFID) which will sanction over Rs.3 lakh crore by March 2026.
To date, it has sanctioned of more than Rs.86,804 crore for projects spread across the country and in diversified sub-sectors of infrastructure https://www.globaltenders.com/ , such as Roads, Renewable Power, Ports, Railways, Water and Sanitation, City Gas Distribution among others https://www.conexpoconagg.com/ .
Fifty per cent of the Rs.86,804 crore has been sanctioned with long tenure for 50 to 20 years.
The Institution is already collaborating with many multilateral institutions for facilitating long term credit lines, blended and concessional finance, technical assistance, knowledge sharing, etc https://www.onlinesbi.sbi/ .
NaBFID has collaborated with the International Finance Corporation (IFC) https://www.ifc.org/en/home to offer Transaction Advisory Services for developing a robust pipeline of investment-ready PPP projects in the infrastructure sector across India.
NaBFID https://nabfid.org/ will continue its focus on infrastructure financing and contribute towards the goal of Viksit Bharat.
After reviewing the performance, the Minister has advised NaBFID to introduce a structured partial credit enhancement facility towards deepening bond markets, including for Urban Local Bodies and Municipalities, and create a data repository for the infrastructure sector complementing the National Infrastructure Pipeline and PM-Gati Shakti to crowd-in patient capital.
Sitharaman also advised NaBFID to develop sector specialisation to unique capability to evaluate and underwrite large and complex infrastructure projects.
The Government created NaBFID in April 2021 as India’s fifth All India Financial Institution in the country to support the development of long-term non-recourse infrastructure financing in India, including the development of the bonds and derivatives markets necessary for infrastructure financing.
NaBFID has both developmental and financial objectives.
The authorised share capital of the Institution is Rs.1 lakh crore, and Government has already infused an initial capital of Rs.20,000 crore along with a grant of Rs.5,000 crore. Fiinews.com
