Source: BS
Context:
National Bank for Financing Infrastructure and Development (Nabfid) will prepare a report on infrastructure financing challenges. To be submitted to the Department of Financial Services (DFS), Ministry of Finance within 15 days.
Key Issues Discussed
- Financing Gaps – Shortfall in availability of long-term infra finance.
- Municipal Bonds – Barriers in issuance, low investor appetite.
- Capacity Building – Need to strengthen institutions and skill base for infra financing.
- Data Gaps – Better availability of information on defaults and recoveries required for risk assessment.
About Nabfid
- Established under NABFID Act, 2021 as a Development Finance Institution (DFI).
- Objective: Provide long-term infrastructure financing and develop the bond/loan market.
- Functions as a catalyst for private investment in infra through credit enhancement, guarantees, and innovative financing.
