National Bank for Financing Infrastructure & Development Bill 2021 | Amit Tiwari | Tarun IAS

National Bank for Financing Infrastructure and Development bill, 2021

What is NBFID?
Authorized Share Capital- Rs. 1 Lakh Crore
Central Government will have 100% share initially which will be subsequently reduced to 26%.
The ownership will be transferred to –
Multilateral Institutions
Sovereign Funds
Pension Funds
Investment Banks
Corporate Investors

Structure of Organization

Chairperson (Appointed by C.G. in consultation with the RBI)

MD (up-to 3 MDs)

2 Directors nominated by the Central Government

Up-to 3 Directors elected by the Shareholders

Independent Directors as specified

Support

Rs. 5000 Crore to NBFID by the end of financial year 2021.

Guarantee at a concessional rate up-to .1% for borrowing from Multilateral Institutions

Can guarantee the bonds, debts and other financial instruments

Costs towards insulation from fluctuations in foreign exchange (in connection with borrowing in foreign currency) may be reimbursed by the government in part or full

Exemptions from Investigations
No investigation can be initiated against employees of NBFID without the prior sanction of

Central Government in case of Directors and Chairperson
Managing Director in case of other employees

Courts also need to take permission from Central Government for taking cognisance in any case


Functions

Extending loans and advances for infrastructure projects.
Taking over or refinancing such existing loans.
Attracting investment from private sector investors and institutional investors for infrastructure projects.
Organising and facilitating foreign participation in infrastructure projects.
Facilitating negotiations with various government authorities for dispute resolution in the field of infrastructure financing.
Providing consultancy services in infrastructure financing.

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