The government will introduce the National Bank for Financing Infrastructure and Development Bill, 2021 in the current Budget session in Parliament.
According to a Mint report, the law, if passed, will pave the way for setting up of a new development finance institution (DFI) to bankroll infrastructure projects. The details of the bill will be made public once it is tabled in Parliament.
The ongoing Parliament session will also consider 18 other bills, including the Finance Bill, Electricity (Amendment) Bill, 2021 and the Mines and Minerals (Development and Regulation) Amendment Bill, 2021.
The finance ministry had started working on the structure of a new DFI last year. The DFI has been envisaged as a government-backed specialized institution to offer funds for infrastructure projects, which will also help in funding projects under the National Infrastructure Pipeline (NIP).
As per the information available on the Lok Sabha website, the law aims “to set up a new Development Financial Institution (DFI) as a provider, enabler and catalyst for infrastructure financing and as the principal financial institution and development bank for building and sustaining a supportive ecosystem across the life cycle of infrastructure projects.”
Meanwhile, the proposed amendments in the Electricity (Amendment) Bill include measures such as “de-licensing” of the power distribution business to encourage competition. The Mines and Minerals (Development and Regulation) Amendment Bill will usher reforms in the minerals sector, including helping auction more mines.
Also on the table will be a metro rail Bill, which is expected to provide legal framework for construction, operation and maintenance of metro rail projects including those under public private partnership (PPP) mode.