The infra financing push, Govt makes way for DFI

As the Govt clears the path for a mega infrastructure push with a development financial institution (DFI) , this is what you need to know.

1. The DFI has been set up to fill the gaps in large infrastructure funding needs.
2. The DFI will be set up with an initial corpus of Rs 20,000 cr and will be scaled up to Rs 3 lakh crore
3. The government will give Rs 5,000 crore as grant to the institution
4. Govt will hold 100% initially but is willing to sell 26% stake over time.
5. DFI will be managed by a professional board.
6. The institute will be backed by the sovereign, giving it access to cheaper funds
7. Govt to give 10-year tax exemption to funds invested in the DFI
8. DFI isn't a new concept ICICI, IDBI started out as DFI's to finally be full banks.
9. Govt to choose between 7,000 projects for funding via DFI
10. Even at Rs 3 lakh crore it covers only 3% of the Rs 111 lk crore infra pipeline