DFI cleared, to begin with 100% govt ownership

17 Mar 2021 Editorial Team

The government has cleared a bill to set up a government-owned development finance institution (DFI) with initial paid-up capital of Rs 20,000 crore so that it can leverage around Rs 3 trillion from the markets in a few years to provide long-term funds to infrastructure projects as well as for development requirements of the country.

The Budget 2021 has provided Rs 20,000 crore to capitalise the institution. The DFI funding of infrastructure seeks to support the implementation of the burgeoned infrastructure outlay. As widely expected, a pandemic recovery plan has dominated a 37% increase in planned infrastructure spend.

Sitharaman had announced in the Budget 2021 that the government will have 100% ownership in the new development finance institution (DFI). DFI will start with 100% government ownership and gradually brought down to 26%, Sitharaman had said.

According to the Finance Minister, despite attempts to have alternative investment funds, there were no banks that could take up such a high long-term risk and fund the development.

The proposed DFI will have 50% non-official directors, Sitharaman added. DFI will have certain tax benefits for ten years, she further added.

The central government is also planning to issue securities to the Development Finance Institution, by which the cost of funds will come down.

In the Budget 2019-20, Sitharaman had proposed a study for setting up DFIs for promoting infrastructure funding. Around 7,000 projects have been identified under the National Infrastructure Pipeline (NIP), with a projected investment of a whopping Rs 111 lakh crore during 2020-25.

Image Source

Also read: Government to fully own the new DFI

Also read: Infra-Nirbhar webinar to discuss infrastructure funding

Infrastructure Urban

09 Jan 2026

Mount Invests Rs 250 Cr, Adds PUF & PEB Plants, 400+ Jobs

TUMKUR, Karnataka, January 8, 2025 - Mount Roofing & Structures Private Limited, one of India's fastest-growing manufacturers in PUF and a leading solutions provider across Pre-Engineered Building (PEB) and Polycarbonate sheets, simultaneously inaugurated its second fully automated continuous Sandwich Panel manufacturing line and a new PEB manufacturing plant at its integrated campus in Tumkur." The milestone expansion, part of a total investment of INR 250 crores, marks a significant advancement in the company's commitment to engineered performance, manu..

Titan Intech Strengthens UltraLED Push With Global LED Veteran

Titan Intech has announced the induction of global LED industry veteran Su Piow Ko to its Board of Directors, marking a strategic step in strengthening its UltraLED Displays roadmap and building globally competitive LED display solutions from India.The appointment aligns with Titan Intech’s ambition to position India as a hub for advanced, high-quality LED display manufacturing. With an increased focus on UltraLED Displays, the company aims to enhance technical governance, raise manufacturing standards and expand its presence across global markets.Su Piow Ko brings over three decades of inte..

Dun & Bradstreet Flags New Growth Engines in India 2026 Outlook

Dun & Bradstreet has released its India 2026: D&B’s Perspective report, projecting a stable macroeconomic environment underpinned by fresh opportunities for productivity-led and inclusive growth. The report outlines how India’s next growth phase will be driven by digitised logistics, trusted data ecosystems, clean energy and rising city vitality.According to the outlook, India’s GDP growth is expected to reach around 6.6 per cent by FY2027, supported by resilient consumer demand and sustained public investment. Manufacturing is seen entering a new phase, moving beyond scale towar..