NaBFID Infrastructure Financing Report to Finance Ministry
Why in the news
NaBFID is to compile a report on obstacles in funding infrastructure and hand it to the finance ministry’s DFS within a fortnight.
Key facts
- Body: National Bank for Financing Infrastructure and Development (NaBFID).
- Report to: Department of Financial Services (DFS), Ministry of Finance.
- Time limit: 15 days.
Issues discussed
- Financing gaps: too little long-term infrastructure finance.
- Municipal bonds: hurdles in issuing them and weak investor interest.
- Capacity building: stronger institutions and skills needed.
- Data gaps: better information on defaults and recoveries is needed to assess risk.
About NaBFID
- Created under the NaBFID Act, 2021 as a Development Finance Institution.
- Goal: supply long-term infrastructure finance and grow the bond and loan market.
- Acts as a catalyst for private investment through credit enhancement, guarantees and innovative financing.
Exam angle
- Legal basis: NaBFID Act, 2021.
- Type of institution: DFI.
- Nodal ministry for the report: Finance, via DFS.