NEW DELHI: Finance Minister Nirmala Sitharaman has encouraged that the New Development Bank (NDB) facilitate private sector participation and explore more innovative financing structures. The Minister also suggested that the NDB develop a synergistic relationship with these institutions that share its development priorities to achieve greater results.

Addressing the Sixth Annual Meeting of the Board of Governors of the New Development Bank through video-conference, FM highlighted the role of Development Financial Institutions (DFIs) in infrastructure financing and mentioned that India is going to set up a new Development Financial Institutions with initial paid-up capital of around USD 3 billion with a lending target of USD 69 billion in next three years, said an official statement.

"The Finance Minister encouraged the New Development Bank to facilitate private sector participation, explore more innovative financing structures, discover co-financing opportunities with other MDBs, develop a pipeline of bankable projects, and promote environmental and social safeguards to enhance the sustainability of infrastructure, etc," it said.

Finance Minister also emphasized the need for the New Development Bank to maintain and improve upon the ratings assigned by international rating agencies through adequate capitalization, high-quality governance and prudent management.

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