<p>The Centre on Tuesday approved setting up of a Development Finance Institution to pump in funds into infrastructure projects, Finance Minister Nirmala Sithraman said.</p>.<p>The Union Cabinet, at a meeting chaired by Prime Minister Narendra Modi, also proposed to grant Rs 20,000 crore as equity support to the Development Finance Institution (DFI) which is expected to raise Rs 3 lakh crore through markets over the next few years.</p>.<p>The Finance Minister will introduce a Bill in the ongoing session of Parliament to establish the DFI, which was announced in the Union Budget presented last month.</p>.<p><strong>Read | <a href="https://www.deccanherald.com/national/no-proposal-to-bring-petrol-diesel-atf-gas-under-gst-fm-sitharaman-962296.html" target="_blank">No proposal to bring petrol, diesel, ATF, gas under GST: FM Sitharaman</a></strong></p>.<p>Sitharaman said initially the new institution would be state-owned and the government would gradually reduce its stake to 26 per cent.</p>.<p>The DFI would seek to raise funds from global pension and insurance sectors for investment in new projects, carrying certain tax benefits, she added.</p>.<p>The DFI will start with a clean slate and the board will take a decision on merger or acquisition of other entities such as the India Infrastructure Finance Company Limited, Debasish Panda, Secretary, Department of Financial Services, told reporters.</p>.<p>The institution will have a professional board, led by a person of eminence with enough heft and stature to meet the requirements of the new century.</p>.<p>“The chairman will have a longer tenure and a higher age limit and will be given “market-driven” emoluments.</p>.<p>Sitharaman referred to institutions such as the IDBI that were established to fund infrastructure projects but gradually changed their nature of business.</p>.<p>The institution will have tax benefits for a 10-year long period and the government would amend the Indian Stamp Act, she said adding that the government will also give certain securities.</p>.<p>The DFI will fund projects identified by the national infrastructure pipeline which has listed 7,000 items and the board will decide which of them would be funded.</p>
<p>The Centre on Tuesday approved setting up of a Development Finance Institution to pump in funds into infrastructure projects, Finance Minister Nirmala Sithraman said.</p>.<p>The Union Cabinet, at a meeting chaired by Prime Minister Narendra Modi, also proposed to grant Rs 20,000 crore as equity support to the Development Finance Institution (DFI) which is expected to raise Rs 3 lakh crore through markets over the next few years.</p>.<p>The Finance Minister will introduce a Bill in the ongoing session of Parliament to establish the DFI, which was announced in the Union Budget presented last month.</p>.<p><strong>Read | <a href="https://www.deccanherald.com/national/no-proposal-to-bring-petrol-diesel-atf-gas-under-gst-fm-sitharaman-962296.html" target="_blank">No proposal to bring petrol, diesel, ATF, gas under GST: FM Sitharaman</a></strong></p>.<p>Sitharaman said initially the new institution would be state-owned and the government would gradually reduce its stake to 26 per cent.</p>.<p>The DFI would seek to raise funds from global pension and insurance sectors for investment in new projects, carrying certain tax benefits, she added.</p>.<p>The DFI will start with a clean slate and the board will take a decision on merger or acquisition of other entities such as the India Infrastructure Finance Company Limited, Debasish Panda, Secretary, Department of Financial Services, told reporters.</p>.<p>The institution will have a professional board, led by a person of eminence with enough heft and stature to meet the requirements of the new century.</p>.<p>“The chairman will have a longer tenure and a higher age limit and will be given “market-driven” emoluments.</p>.<p>Sitharaman referred to institutions such as the IDBI that were established to fund infrastructure projects but gradually changed their nature of business.</p>.<p>The institution will have tax benefits for a 10-year long period and the government would amend the Indian Stamp Act, she said adding that the government will also give certain securities.</p>.<p>The DFI will fund projects identified by the national infrastructure pipeline which has listed 7,000 items and the board will decide which of them would be funded.</p>
