India’s $2.66 billion development bank takes shape

Business Thursday 28/October/2021 13:28 PM
India’s $2.66 billion development bank takes shape

New Delhi: The Indian government today announced the structure of its massive new National Bank for Financing Infrastructure and Development (NaBFID), which will undertake 7,000 big infrastructure projects under the National Infrastructure Pipeline.

The streaming of NaBFID and commissioning of big infrastructure projects offers immense business opportunities for global players involved in a variety of sectors ranging from port development to airport expansion. The process is expected to begin in December.

Prominent Indian banker KV Kamath is to be the Chairperson of the newly set up Development Finance Institution (DFI) which will be owned by the Indian government, according to an announcement by the Department of Financial Services here.

Kamath until recently headed the New Development Bank (NDB) in Shanghai, set up by Brazil, Russia, India, China, South Africa (BRICS) group of emerging market economies. He was chosen by the BRICS governments as its first head six years ago.

NaBFID will have two government-appointed board members, whose names will be announced this week. The interim board will then choose a CEO for the DFI.

NaBFID will have an initial paid-up capital of slightly below quarter trillion Indian rupees ($2.66 billion). It hopes to develop bonds and derivatives markets necessary for infrastructure financing in India.