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A meeting chaired by Financial Services Secretary M. Nagaraju brought together leading public and private sector banks, development finance institutions and infrastructure finance companies to discuss critical gaps in infrastructure financing. The discussion highlighted issues such as shortage of funds, barriers to municipal bond issuance, weak data availability on defaults and recoveries, and the need for capacity building. Several recommendations were put forward. NaBFID has been asked to consult all stakeholders and present a detailed report to the Department of Financial Services within 15 days, marking a focused step toward addressing financing challenges.
Financial Services Secretary M. Nagaraju led a meeting with public sector banks, private sector banks, development finance institutions and infrastructure finance companies to address challenges in infrastructure financing. Advertisement
The discussion covered several important points, including the shortage of financing for projects, barriers faced in issuing municipal bonds, the need for stronger training and capacity building, and better access to data on defaults and recoveries. Participants put forward multiple recommendations to strengthen financing in the sector.
It was decided that the National Bank for Financing Infrastructure and Development (NaBFID) would hold consultations with all stakeholders and prepare a report for the Department of Financial Services within the next 15 days.
The meeting saw participation from major public sector banks such as State Bank of India, Punjab National Bank, Bank of Baroda and Union Bank of India. Private sector lenders including HDFC Bank and ICICI Bank were also present, along with development finance institutions like NABARD, Power Finance Corporation, REC Limited, Indian Renewable Energy Development Agency, and India Infrastructure Finance Company, as well as other infrastructure finance companies.
NaBFID, which was set up in 2021 as a government-backed institution, plays a central role in providing long-term financing for infrastructure projects, especially those requiring non-recourse finance. The institution has been closely working with banks and non-banking finance companies to expand funding avenues.
In past meetings too, the Department of Financial Services had emphasised the importance of greater participation by banks and financial institutions in large infrastructure projects to meet India's long-term development goals.
Source PTI
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