To enhance sources of capital for infrastructure financing, the Central government will set up a Credit Guarantee Enhancement Corporation in the current financial year 2019-20, Finance Minister Nirmala Sitharaman said on Friday.
While presenting the Union Budget in Parliament, she said investment-driven growth requires access to low-cost capital. It is estimated that India requires investments averaging Rs 20 lakh crore every year.
The regulations for setting up a Credit Guarantee Enhancement Corporation have been notified by the Reserve Bank of India (RBI).
Besides, said Sitharaman, an action plan to deepen the market for long term bonds including for deepening markets for corporate bond repos and credit default swaps with a specific focus on infrastructure sector will be put in place.
To permit investments made by foreign institutional and portfolio investors in debt securities issued by IDF-NBFCs will be transferred or sold to any domestic investor within a specified lock-in period, she said.
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