Union Budget 2021: Govt To Set Up Development Finance Institution, To Lend Rs 5 Lakh Crore In 3 Years

Finance Minister Nirmala Sitharaman on Monday announced that the Central Government will set-up "professionally managed" Development Finance Institution (DFI) capitalised with Rs 20,000 crore aiming to have a lending portfolio of at least Rs 5 lakh crore within three years time.

While presenting the Union Budget 2021-22, Sitharaman said that the government would introduce a bill in the budget session of Parliament to set up a new Development Financial Institution.

"The National Infrastructure Pipeline which I had announced in Dec 2019, it is first of its kind. The NIP was launched with over 6,835 projects, now it has expanded to over 7,400 projects. Around 217 projects worth Rs 1,01 lakh crore have been completed," she said.

Professionally managed Development Financial Institution to be set up, to provide, enable and catalyze infra financing. She said that infrastructure development will require a major boost in funding and proposed three ways of doing it--Creating institutional structures, monetizing assets and increasing share of capital expenditure in central and state budgets.

"A professionally managed Development Finance Institution (DFI) is necessary for infrasture finance. I have provided a sum of Rs 2000 crore to capitalise this institution. The ambition is to have a lending portfolio of Rs 5 lakh crore in three years," said Sitharaman. 

(ANI)