Govt to introduce a new Bill on Infrastructure Development support of long-term non-recourse financing in India. The tabled bill will be presented soon on Monday by Finance Minister Nirmala Sitharaman.
The Bill will provide for the development of the bonds and derivatives markets necessary for infrastructure financing and to carry on the business of Financing infrastructure, Lok Sabha. A senior government official said that the Bill also provides for a five-year income tax break to private development finance institutions.
As per Mint reports, The central government has allocated Rs. 20,000 crore in the FY22 budget as equity support for the lender.
NABFID (National Bank Finance Infrastructure Development) will enjoy tax breaks for ten years. Union Cabinet cleared the Bill allowing the creation of NABFID which will raise capital from the market.
The new institution will have a professional board drawing market-linked remunerations and have powers to hire and fire whole-time directors. Prime Minister Modi said this will came into effect to budget announcements swiftly so that the economic stimulus gains momentum and sustains it.