Pvt-sector DFIs to be provided five-year tax relaxation

19 Mar 2021 Editorial Team

A government official told a prominent media source that the government would move an amendment to the income tax act to provide the tax holiday, when the Finance Bill is taken up in the Parliament for passage.

The cabinet on Tuesday approved the National Bank for Financing Infrastructure and Development (NaBFID)—the state-run DFI proposed in the budget and a bill for the creation of government-owned as well as private DFIS. The DFI bill will soon be introduced in the Parliament.

The Centre plans for the NaBFID to enjoy a 10-year income tax holiday and receive a Rs 5,000 crore grant as cash or marketable securities in lieu of tax-free bonds.

Certain asset transfers to DFIs will also get stamp duty relief, a government official said.

The Reserve Bank of India (RBI) will regulate DFIs and formulate rules for them. DFIs set up in the private space in the 1990s were converted into scheduled commercial banks as they struggled with long-term infrastructure financing challenges.

The government is keen to ensure that DFIs succeed this time, given the need for such funding, by creating a facilitative framework. DFI will also support credit enhancement mechanisms, provide project development and monitoring, and help develop the bond market, thereby nurturing the overall infrastructure financing ecosystem. The National Infrastructure Pipeline (NIP) has pegged the funding requirement at over Rs 111 lakh crore till 2025.

Image Source

Also read: DFI cleared, to begin with 100% govt ownership

Also read: Government to fully own the new DFI

The government has decided to provide a five-year income tax holiday to private sector development finance institutions (DFIs) to build a robust funding infrastructure system. They will join a state-owned DFI that's being set up. A government official told a prominent media source that the government would move an amendment to the income tax act to provide the tax holiday, when the Finance Bill is taken up in the Parliament for passage. The cabinet on Tuesday approved the National Bank for Financing Infrastructure and Development (NaBFID)—the state-run DFI proposed in the budget and a bill for the creation of government-owned as well as private DFIS. The DFI bill will soon be introduced in the Parliament. The Centre plans for the NaBFID to enjoy a 10-year income tax holiday and receive a Rs 5,000 crore grant as cash or marketable securities in lieu of tax-free bonds. Certain asset transfers to DFIs will also get stamp duty relief, a government official said. The Reserve Bank of India (RBI) will regulate DFIs and formulate rules for them. DFIs set up in the private space in the 1990s were converted into scheduled commercial banks as they struggled with long-term infrastructure financing challenges. The government is keen to ensure that DFIs succeed this time, given the need for such funding, by creating a facilitative framework. DFI will also support credit enhancement mechanisms, provide project development and monitoring, and help develop the bond market, thereby nurturing the overall infrastructure financing ecosystem. The National Infrastructure Pipeline (NIP) has pegged the funding requirement at over Rs 111 lakh crore till 2025. Image Source Also read: DFI cleared, to begin with 100% govt ownership Also read: Government to fully own the new DFI

Infrastructure Urban

08 Apr 2026

UniAcoustic, Vicoustic Form UniVicoustic Alliance

UniAcoustic, part of United Group, has acquired a strategic stake in Portugal-based Vicoustic, forming a new alliance branded as UniVicoustic. The agreement, signed in Mumbai, marks a significant cross-border partnership aligned with evolving India–EU trade dynamics.The collaboration brings together Vicoustic’s global expertise in architectural acoustic products with UniAcoustic’s manufacturing scale and distribution capabilities. The combined platform aims to expand market reach, integrate technology and optimise supply chains across key regions.The development comes amid progress in th..

Infrastructure Urban

08 Apr 2026

Dalmia Bharat, Delhi PWD Revamp Under-Flyover Spaces

Dalmia Bharat has partnered with the Public Works Department (PWD), Government of Delhi, to redevelop select under-flyover spaces and a road stretch into sustainable urban hubs. The agreement covers key locations including Lodhi Flyover, Oberoi Flyover, Mangi Bridge and Hanuman Setu.Under the initiative, the company will undertake design, landscaping, plantation and long-term maintenance of the sites, with a defined upkeep period of three years after completion. The project aims to improve urban aesthetics while promoting environmental sustainability and biodiversity restoration in high-densit..

Infrastructure Urban

08 Apr 2026

Versigent Debuts as Independent NYSE-Listed Company

Versigent has launched as an independent publicly traded company following its separation from Aptiv, with shares commencing trading on the New York Stock Exchange under the ticker “VGNT”. The move marks a significant milestone in the company’s transition into a standalone global player in power distribution systems.The company specialises in the design, manufacturing and delivery of low- and high-voltage electrical architectures, supported by engineering centres across four continents and manufacturing operations in over 25 countries.Versigent reported revenues of $8.8 billion, net inco..