By Joel Rebello
Copyright indiatimes
AgenciesM Nagaraju
The National Bank for Financing Infrastructure and Development (NABFID) needs to step up to move towards a system shaping impact on infrastructure developing an advisory practice to help make early stage infrastructure projects. Deep expertise is also needed on urban infrastructure and water issues to help local bodies develop expertise along with tech and data which NABFID can take an initiative for, department of financial services secretary, M Nagaraju said. He said that NABFID has had a brisk start with Rs 2 trillion loan sanctions but the next phase should be “system shaping.””NABFID can start as an transaction advisor willing to take up early stage risks so that ambitious projects become bankable and create a long term pipeline for commercial banks and investors to invest,” he said.He acknowledged that NABFID has launched pioneering products like partial credit enhancement (PCE) but added that a deep expertise is needed to be developed in priority sectors like urban infrastructure and water. “Urban sector requires most investments till 2047. Waster management, transport and infra and water. In each NABFID can set standards,” he said.Live EventsIn PCE guidelines released in August, Reserve Bank of India allowed banks, alternative investment funds (AIFs), non banking finance companies (NBFCs) and development finance institutions (DFIs) to provide credit enhancement which will help infrastructure companies to improve their ratings and freeing up bank limits for these companies.Bonds issued by municipal corporations have also been allowed to be provided credit enhancement support. On Thursday, government backed NABFID launched its PCE product.Nagaraju said India needs to develop new investment instruments at scale so that banks can rebalance their portfolios every three to five years while crowding institutional capital.”Most crucially we must deepen engagement with states, urban local bodies and help bankability of projects by providing toolkits and project reports, PPP cells etc where NABFID can play an important part,” he said.Add as a Reliable and Trusted News Source Add Now!
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