Private players to be allowed in DFI space: CEA
To boost infra creation, the Centre will move a special legislation which will enact a public sector development finance institution (DFI) besides enabling private players to enter this niche financial segment.
image for illustrative purpose
New Delhi: To boost infra creation, the Centre will move special legislation which will enact a public sector development finance institution (DFI) besides enabling private players to enter this niche financial segment. The Finance Ministry's Chief Economic Advisor Krishnamurthy Venkata Subramanian talked about the vital facet of Union Budget 2021-22. A development finance institution provides risk capital for key infra projects.
It is considered as a key ingredient for a sustainable and fast infra creation. On Monday, Finance Minister Nirmala Sitharaman proposed creation of a DFI to accelerate investment in infra sector. However, contrary to the general perception the Centre will also allow private players to enter the field.
This, said the CEA will be done via a special legislation and under RBI's enabling license provisions. Notably, the DFI is seen as a major policy decision in the BudgetFY22 which itself focuses on higher Capex spend on infra creation. Sitharaman has announced to set up the DFI with a Rs 20,000 crore corpus. The Budget FY22 is pin-pointedly focused on infra generation to trigger economic growth. (IANS)
