Source: DH
Context: The National Bank for Financing Infrastructure and Development (NaBFID) signed a strategic MoU with the New Development Bank (NDB) to boost cooperation in long-term infrastructure and clean energy financing in India.
About NaBFID (National Bank for Financing Infrastructure and Development):
- What it is: A Development Finance Institution (DFI) dedicated to funding long-term infrastructure projects across India.
- Established under: NaBFID Act, 2021.
- Regulated by: Reserve Bank of India (RBI) as an All-India Financial Institution (AIFI).
- Objectives:
- Fill gaps in long-term non-recourse infrastructure finance.
- Support growth of India’s bond and derivatives markets.
- Accelerate sustainable economic development.
- Strengthen the ecosystem for project financing in clean energy, transport, and water.
- Key Features:
- Capital base to be scaled to ₹1 trillion with institutional support.
- Focus on medium to long-term funds (1–5+ years).
- Plans joint research, workshops, and capacity building with global partners like NDB.
- NaBFID promotes public-private partnerships (PPPs) and ensures financial viability of infrastructure projects.
About the New Development Bank (NDB):
- What it is: A multilateral development bank formed by the BRICS nations — Brazil, Russia, India, China, South Africa.
- Idea proposed: 2012 BRICS Summit, New Delhi.
- Established by: Fortaleza Declaration, 15 July 2014.
- Became operational: 21 July 2015.
- Aims:
- Mobilize resources for infrastructure and sustainable development.
- Fund projects in emerging and developing economies (EMDCs).
- Encourage green and inclusive growth through clean energy, transportation, and water management.
- Key Features:
- Authorized capital: $100 billion
- India’s contribution: $2 billion (paid in 7 tranches from 2015–2022)
- Active in India: 20 ongoing projects worth $4.867 billion funded by NDB (as of Dec 2024)
