New Delhi: The government has decided to leave for new management of the Development Financial Institution (DFI) to decide on the Merger Infrastructure Finance Company (IIFCL) or other entities with itself.
Officials told TII that the government did not want to burden new entities with legacy problems and wanted to start with clean slate.
“Let the new board decide whether you want to take over the existing company and let them decide who they want in their folds,” said a source.
This step will come as a big assistance for IIFCL management, which lobby to lobby mergers, although it may prove to harm NBFC in the long term and comes with the risk of turning it into an organization such as IFCI, India for the first time DFI, which has survived for more than two decades but has A little to contribute.
FM Nirmala Sitharaman has announced the establishment of a new DFI, called National Bank for infrastructure and development financing, in its last budget and aims as a convenience store for all services related to infrastructure.
While the law to establish institutions, which will come with government funding, has been applied by parliament, the Ministry of Finance has assigned Sidbi to do the basis and appoint consultants.
DFI is the latest trial.