Figure 2: No Copyright Infringement Intended

Context:

• The National Bank for Financing Infrastructure and Development (NaBFID) is likely to begin its lending operations with about 190-200 big infrastructure projects in the railways, roads and energy sector.

Details:

• There are 193 projects above Rs 1,000 crore each which are there under the National Infrastructure Pipeline (NIP).
• the development finance institution will also look into other roles that it could play for the government.

About National Bank for Financing Infrastructure and Development

• In March this year, the Parliament had passed a bill to set up NaBFID, a development financial institution (DFI).
• K V Kamath has been appointed by the government to head the National Bank for Financing Infrastructure and Development (NaBFID).
• NaBFID has been set up to boost infrastructure financing in the country like development of bonds and derivatives markets needed for infrastructure financing.

Functions of NaBFID:

• extending loans and advances for infrastructure projects,
• taking over or refinancing such existing loans,
• attracting investment from private sector investors and institutional investors for infrastructure projects,
• organising and facilitating foreign participation in infrastructure projects,
• facilitating negotiations with various government authorities for dispute resolution in the field of infrastructure financing,
• providing consultancy services in infrastructure financing.  

Source of Funds:

NBFID may borrow money from:

• central government,
• Reserve Bank of India (RBI),
• scheduled commercial banks,
• mutual funds,
• multilateral institutions such as World Bank and Asian Development Bank.

Prior sanction for investigation and prosecution: 

No investigation can be initiated against employees of NBFID without the prior sanction of:

• the central government in case of the chairperson or other directors,
• (ii) the managing director in case of other employees.