Cabinet clears proposal to set up development finance institution: Nirmala Sitharaman – Times of India
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NEW DELHI: The Union Cabinet on Tuesday approved the creation of a development financial institution (DFI) for financing infrastructure and development activities in the economy.
Briefing the media after the Cabinet meeting, finance minister Nirmala Sitharaman thanked Prime Minister Narendra Modi for his gentle nudge to set up the DFI as announced in Budget 2021.
The DFI will help raise long-term funds.
The institution will be set up on a capital base of Rs 20,000 crore and will have lending target of Rs 5 lakh crore in three years.
Its initial grant will be Rs 5,000 crore and additional increments of grants will be made within the limit of Rs 5,000 crore.
Briefing the media after the Cabinet meeting, finance minister Nirmala Sitharaman thanked Prime Minister Narendra Modi for his gentle nudge to set up the DFI as announced in Budget 2021.
The DFI will help raise long-term funds.
The institution will be set up on a capital base of Rs 20,000 crore and will have lending target of Rs 5 lakh crore in three years.
Its initial grant will be Rs 5,000 crore and additional increments of grants will be made within the limit of Rs 5,000 crore.
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