Budget 2018: Finance Ministry decides not to recreate an omnibus development bank

Instead, the ministry has cleared a proposal from at least one line ministry to create a specialised financing arm quite like the IRFC

The word from North Block just before the Budget is that the finance ministry has decided not to recreate an omnibus development bank. Instead with at least one international rating agency having pushed up India’s credit rating, it will push state-owned and supported entities to take advantage of the favourable conditions to raise more money from the markets.

For this purpose, the ministry has cleared a proposal from at least one line ministry to create a specialised financing arm quite like the Indian Railway Finance Corporation.

When state-owned institutions raise money from the markets on their own steam to finance