Last Update: January 05, 2023, 17:20 IST
He said that NIP projects with a total outlay of Rs 111 lakh crore are being monitored under the PM Gatishakti portal.
The NIP, which started with 6,800 projects, has now expanded to over 9,000 projects covering 34 infrastructure sub-sectors.
Banks and financial institutions need to design products to suit the needs of infra projects in view of the Rs 111 lakh crore National Infrastructure Pipeline (NIP), Financial Services Secretary Vivek Joshi said on Thursday. Noting that the infrastructure sector has strong backward and forward linkages with a strong multiplier effect, he said, the NIP as well as other initiatives like Make in India, the production-linked incentive scheme, is poised to catapult. India For USD 5 trillion economy.
He said that NIP projects with a total outlay of Rs 111 lakh crore are being monitored under the PM Gatishakti portal. The NIP, which started with 6,800 projects, has now expanded to over 9,000 projects covering 34 infrastructure sub-sectors.
While 44 per cent of the investment is funded through the central and state budgets, banks, financial institutions and development finance institutions (DFIs) are expected to play a significant role in funding these projects with a share of around 30 per cent. He was addressing a program on the occasion of the 18th Foundation Day of state-owned IIFCL here.
“Achieving this objective requires a proactive and synergistic approach by banks, financial institutions and DFIs. Only then investment congestion can be avoided and projects of national importance will be able to get timely and proper funding,” he said.
The government set up the National Bank for Financing Infrastructure and Development (NABFID) as a DFI in 2021 to support the development of long-term non-recourse infrastructure financing in India, including the bond and derivatives markets needed for infrastructure financing. development is included. and continuation of the infrastructure financing business.
The government has given a grant of Rs 5,000 crore for NaBFID in addition to equity capital of Rs 20,000 crore.
Joshi said that for public institutions working in this area, it is important to offer a mix of equity and debt products on alternate tenors without impacting each other’s efforts for business expansion.
“The need of the hour is to meet the financial needs of new infrastructure with products that are in sync with the project realities. Institutional capacity to undertake projects in existing and emerging sub-sectors needs to be constantly re-evaluated. This is where institutions like IIFCL can play a leading role.”
referring to a world The bank’s report, Joshi said, has raised its GDP forecast for the current fiscal to 6.9 per cent from 6.5 per cent, suggesting the country is showing greater resilience to global shocks.
During the first half of the current financial year, India registered a growth of 6.3 per cent in GDP.
Joshi said it is showing signs of softening on inflation as is evident from the latest data.
Wholesale price-based inflation fell to a 21-month low of 8.39 per cent in November, while retail inflation fell to an 11-month low of 5.8 per cent in November.
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(This story has not been edited by News18 staff and is published from a syndicated news agency feed)