NBFID to start operations in India

Highlights:

The National Bank for Financing Infrastructure and Development (NBFID) is set to start its lending operations with 190-200 big infrastructure projects in roads, railways, and energy sector.
This announcement was made by newly appointed Chairman of NBFID, K V Kamath.
Central government had announced the appointment of K V Kamath as the chairperson of the newly set up NBFID.
NBFID was set up with the aim of catalysing investment in fund-starved infrastructure sector in India.
Under the National Infrastructure Pipeline (NIP), there are 193 projects above Rs. 1,000 crore each.
NIP with an ambition of USD 1.5 trillion covers key sectors like roads, metro, railways, and energy. It also includes some social projects like irrigation projects.

NAFID: A Fact File

NBFID was set up as a corporate body, with an authorised share capital of one lakh crore rupees. It was set up with following objectives:
To directly or indirectly lend, attract investment or invest for infrastructure projects that are located entirely or partly in India.
To facilitate the development of market for loans, bonds, and derivatives for infrastructure financing.

Functions:

To extend loans and advances for infrastructure projects.
To take over or refinance such existing loans.
To attract investment from private sector investors as well as institutional investors for infrastructure projects.
To organise and facilitate foreign participation in infrastructure projects.
To facilitate negotiations with several government authorities for dispute resolution with respect to infrastructure financing.
To provide consultancy services in infrastructure financing.