Govt considers creating bank with $13.7 bn equity to fund roads, ports

The finance ministry has prepared a note for Modi's cabinet to discuss the proposal

The Centre is considering a proposal to create a bank to help fund port, road and power projects as Prime Minister Narendra Modi’s administration aims to lift Asia’s third-largest economy out of the recession.

The new entity, likely to be part of the Budget announcement in February, may have an equity capital of Rs 1 trillion ($13.7 billion), people with knowledge of the matter said, asking not to be identified as the matter isn’t public. The existing India Infrastructure Finance, which has a Rs 2,000 crore corpus, will be merged with the bank, they said.