Union Budget 2021: The government can make a special announcement in the budget this time to complete big infrastructure projects. It is possible that a National Bank will be announced to finance these projects, in which capital will be infused through tax free bonds, insurance and pension funds.
- January 25, 2021, 10:18 AM IST
According to sources, it may be necessary to give a fixed portion of provident fund, pension and insurance fund to National Bank. At the same time, there is also preparation to raise capital through tax free bonds and funds from abroad. It is proposed to make this National Bank through an Act. This bank will also be given more rights.
Credit line facility possible with RBI
However, the capital adequacy requirement of this bank may be less than that of NBFCs. But sources say that the facility of direct credit line from RBI will be possible in this bank.
#BigBudgetExclusive | For easy financing of large infra projects, the government may announce to create a National Bank in the budget. @RoyLakshman @ AshVerma111#BudgetOnAwaaz #realestate #StampDuty pic.twitter.com/o3ZSBT2Tk7
– CNBC-AWAAZ (@CNBC_Awaaz) January 25, 2021
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Sources said that National Bank lndia lnfrastructure Finance Company Ltd. (llFCL). Also, the proposal of National Bank for Financing lnfrastructure and Development Bill is also possible in the budget.
This bank will also do monitoring work to complete projects
Larger infrastructure projects will be financed for a longer period through the National Bank. The same bank will also provide restructuring and financial closure of these projects. Apart from this, the bank will also continuously monitor these projects to monetize and complete them on time. The main objective of this bank is to finance the National Infrastructure Pipeline. The government has planned to invest Rs 11.1 lakh crore on it in the next 5 years.