Tax breaks for DFIs; way for LIC listing cleared
Govt may guarantee bonds, debentures and loans issued by the new institution
The government will next week introduce in the National Bank for Financing Infrastructure and Development (NaBFID) Bill 2021 in Lok Sabha
The Cabinet on Tuesday approved the Bill to create the government-promoted DFI
The government expects the DFI to finance a large percentage of the Rs 115-trillion spending needed for the National Infrastructure Pipeline
Initially the new institution would be government-owned, with its stake being cut gradually to 26%, says Finance Minister Nirmala Sitharaman
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Proceeds will be part of ADB's ordinary capital resources
Higher tax-GDP is a must for financing security and development
Now that DFIs are making a comeback, three key issues will be crucial for their success -the availability of long-term funds at a reasonable cost, private-sector ownership, and professional management