Chennai: Finance Minister Nirmala Sitharaman said on Monday that the trust between the government and the industry is very important to take advantage of the opportunities thrown by the Covid-19 pandemic while ensuring that the proposed DFI, the National Bank for Financing and Infrastructure Development (Nabfid) became functional immediately.
This belief is also reflected in the actions of the government, he said while handling members of the CII Industrial Room here.
Describing the government’s strategy to handle pandemics, the minister said that on the one hand the focus is to increase vaccination because it is the biggest protection of temporary pandemics on the other hand the government works on improving health infrastructure, including in the city level 2 and level 3, by supporting the private sector .
The Minister of Finance expressed confidence that the planned disinvestment plan was on track.
Sitharaman in budget speech 2021-22, has announced a large ticket privatization agenda, including the privatization of two public sector banks and one general insurance company.
The central budgeted Rs 1.75 lakh crore from stock sales in public sector companies including the Idbi Bank Strategic Sales, BPCL, Corp, Container Corporation, Neelachal Ispat Nigam Ltd, among others.
He also convinced that the Development Financial Institution (DFI) announced in the budget will be operational soon.
Liquidity is no longer a major concern, and that the Bank-NbFC-MFI channel has de-clogger and from October 15 there will be a special encouragement to reach credit to those who need it, he said.
Parliament earlier this year issued a bill to regulate the DFI Crore RS 20,000 with the intention of mobilizing RS 111 Lakh Crore needed for ambitious national infrastructure pipelines (NIP) funding, which has more than 7,000 Greenfield and Brownfield projects.
There are at least three or four attempts in the past to have an alternative investment fund (AIF), but gradually they change the nature of their business or become reluctant to take long-term risk.