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National Bank For Financing Infrastructure And Development (NBFID) Bill, 2021

National Bank For Financing Infrastructure And Development (NBFID) Bill, 2021:

The Rajya Sabha cleared the National Bank for Financing Infrastructure and Development (NBFID) Bill, 2021.

  • The Bill seeks to establish the National Bank for Financing Infrastructure and Development (NBFID) as the principal Development Financial Institution (DFIs) for infrastructure financing.
  • NBFID was announced in the Budget 2021.
  • NBFID will be set up as a corporate body with an authorized share capital of one lakh crore rupees.
  • Objective:
    • To directly or indirectly lend, invest, or attract investments for infrastructure projects located entirely or partly in India.
    • Includes facilitating the development of the market for bonds, loans, and derivatives for infrastructure financing.
  • Functions of NBFID:
    • Extending loans and advances for infrastructure projects.
    • Taking over or refinancing such existing loans.
    • Attracting investment from private sector investors and institutional investors for infrastructure projects.
    • Organizing and facilitating foreign participation in infrastructure projects.
    • Facilitating negotiations with various government authorities for dispute resolution in the field of infrastructure financing.
    • Providing consultancy services in infrastructure financing.

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