Private players to be allowed in DFI space: CEA

MUMBAI: To boost infra creation, the Centre will move a special legislation which will enact a public sector development finance institution (DFI) besides enabling private players to enter this niche financial segment.

In a conversation with IANS, the Finance Ministr y's Chief Economic Advisor Krishnamurthy Venkata Subramanian talked about the vital facet of Union Budget 2021-22.

A development finance institution provides risk capital for key infra projects.

It is considered as a key ingredient for a sustainable and fast infra creation.

On Monday, Finance Minister Nirmala Sitharaman proposed creation of a DFI to accelerate investment in infra sector.

However, contrar y to the general perception the Centre will also allow private players to enter the f i eld.

This, said the CEA will be done via a special legislation and under RBI's enabling license provisions.