Development Finance Institutions

The government has notified the National Bank for Financing Infrastructure and Development (NaBFID) as a public financial institution under the Companies Act. This will help the government fortify the nation's infrastructure finance structures. In a notification issued on September 10, the Corporate Affairs Ministry said that in exercise of the powers, Section 2 of the Companies Act, 2013, the Central Government, in consultation with the Reserve Bank of India, hereby notifies National Bank for Financing Infrastructure and Development as a "public financial institution". The move will enhance the bank's capacity to finance large-scale infrastructure projects, thereby bolstering the country's infrastructure development. NaBFID, a specialised Development Finance Institution (DFI), was set up in 2021, by an Act (The National Bank for Financing Infrastructure and Development Act, 2021). The Bank was set up with the essential objectives of addressing the gaps in long-term non-recourse

The US International Development Finance Corporation (DFC) on Wednesday committed USD 30 million to Dalmia Polypro Industries for building a plastic recycling facility in Maharashtra. Dalmia, which produces high-quality recycled materials from post-consumer plastic waste, will raise the money from external commercial borrowing (ECB) route to fund the new recycling facility in Nashik, DFC said in a statement. It said the new facility will support improvements in India's plastic waste value chain and expand the capacity to reduce plastic waste, DFC's regional managing director for South Asia, Ajay Rao, said. The statement said the facility will have a recycling capacity of 1,71,000 metric tonne per year, and help Dalmia Polypro develop food-grade recycled materials and applications. The facility will produce high quality recycled PET (rPET), PP (rPP) and HDPE (rHDPE) flakes and granules and will be partially powered by renewable energy and biofuel. An agreement for the facility was

Investment by Development Finance Corporation will supporting India in its clean energy transition, says Tata Power

The DFC invests in energy, healthcare, infrastructure, agriculture, and small businesses among other sectors

NaBFID can support infrastructure projects in three ways: by giving loans, subscribing to bonds and picking up equity stakes

According to the memorandum, if NBFCs are to be regulated like banks, then the typical NBFC model of lending will suffer which will have an impact lending to the unbanked/ underbanked segment

The Union power ministry has moved a proposal to grant Power Finance Corporation (PFC) the status of a development financial institution (DFI)

Power min writes to FinMin, pitching PFC as lead agency for energy transition funding

The Centre, earlier this month, transformed the Banks Board Bureau into FSIB and expanded the headhunter's role to suggest appointments for PSU banks, insurance companies and financial institutions

The DFI is preparing to commence its operation in the first quarter of the next fiscal year.

Last month, the government had announced the appointment of the veteran banker as the chairperson of the newly set up development finance institution

Centre to appoint its two nominees this week

Over years, the two institutions will become agents of uncertainty as the government tries to make them work to avoid adverse criticism.

Here are the best of Business Standard's opinion pieces for Friday

No credible signs yet of the viability of long-term infrastructure lending in India

Guaranteeing DFI debt will increase systemic risk

CDC's investment in the transaction is supported by a partial guarantee provided by Northern Arc

'Health is not part of the concurrent list. In light of the pandemic, it's high time we move health as a subject in the concurrent list,' said N K Singh at an event

The Bill suggests that the government has learned from past mistake

Tax breaks for DFIs; way for LIC listing cleared