With an aim to present a lift for infrastructure improvement within the nation, the Union Cabinet headed by Prime Minister Narendra Modi on Tuesday accepted the formation of the Nationwide Financial institution for Infrastructure Growth.

The cabinet cleared the organising of a Growth Finance Establishment (DFI) with a capital infusion of Rs 20,000 crore, introduced Finance Minister Nirmala Sitharaman in a cabinet briefing on Tuesday, March 16. The Growth Finance Establishment will assist increase long-term funds and Finances 2021 will present a preliminary quantity.

The initial grant will be Rs 5,000 crore, additional increments of the grant will be made within limit of Rs 5,000 crore," the Finance Minister said.

Past attempts to have alternative investment funds were taken up, but for various reasons, we ended up with no bank which could take up long-term risk and fund development. Following this, Union Cabinet has cleared the setting up of a Development Finance Institution (DFI), in acknowledgment of the realization that both development and financial objectives will matter for setting up a DFI," said Sithraman while addressing a press conference.

Earlier, Sitharaman attended the meeting of the Cabinet Committee of Economic Affairs (CCEA). "DFI will help raise long-term funds; the Union Budget of 2021 will provide an initial amount.

There is no proposal as of now to bring petrol, diesel, ATF, gas under GST: Finance Minister

Rising trend of consumer price inflation may hurt consumers further in March

LPG consumption sees in India up by 7.3 pc despite price rise: OMCs