In news

In order to achieve the target of National Infrastructure Pipeline (NIP) in the coming years the Government proposes following three steps :

1.  Creation of institutional structures
2.  A big thrust on monetizing assets
3.  Enhancing the share of capital expenditure in Central and State budgets

Infrastructure financing - Development Financial Institution (DFI)

• The Union Finance Minister announced that a sum of Rs. 20,000 crore has been provisioned in the Union Budget to capitalise Development Financial Institution (DFI).
• A Bill will be introduced to set up DFI which will act as a provider, enabler and catalyst for infrastructure financing.
• The ambition is to have a lending portfolio of at least Rs. 5 lakh crore for this DFI in three years time, the Minister added.  

 Asset Monetisation

• The Union Finance Minister announced launch of a“National Monetization Pipeline” of potential brownfield infrastructure assets stating that Monetizing operating public infrastructure assets is a very important financing option for new infrastructure construction.
• An Asset Monetization dashboard will also be created for tracking the progress and to provide visibility to investors.