Finance minister Nirmala Sitharaman will table a bill to set up the proposed new development finance institution-- The National Bank for Financing Infrastructure and Development (NABFID) Bill, 2021 -- in Lok Sabha on Monday.
The minister will seek to introduce the Bill to establish the new infrastructure lender which will support the “development of long-term non-recourse infrastructure financing in India," according to Lok Sabha’s list of business for Monday.
The Bill will provide for development of the bonds and derivatives markets necessary for infrastructure financing and to carry on the business of financing infrastructure, Lok Sabha said.
A senior government official said that the Bill also provides for five-year income tax break to private development finance institutions that will come up. State-run NABFID will enjoy tax breaks for ten years.