Our Purpose

Our Ideology

The principal idea behind the setup of NaBFID is to provide a dedicated and specialized institution focused on addressing the long-term financing needs of the infrastructure sector in India. We aim to do this by leveraging enablers outlined in the Act, specialized talent, robust technological capabilities, and strong governance. NaBFID will play a crucial role in driving the development of innovative financing instruments and deep bond and derivatives markets – further supporting infrastructure funding as well as promoting best practices in financing and data-driven risk management.

Infrastructure development is a critical driver of economic growth and development, and a reliable source of funding is essential to support the timely and efficient deployment of large-scale infrastructure projects. As such, NaBFID aims to be a key partner in helping India achieve its ambitious infrastructure development objectives - responsibly and sustainably.

Significance of NaBFID

India as an economy is witnessing sustainable growth in its GDP. To achieve its US$ 5 trillion ambition, it is imperative for infrastructure investment to grow annually at the rate of 8-10% over the next 5 years. The Indian government is taking significant steps in this direction, with the ambitious National Infrastructure Plan (NIP) having outlaid an investment of INR146 lakh crore across 8,900 diverse infrastructure projects.

However, it requires a systemic exercise to institute, inter alia, higher risk appetites, mitigated ALM solutions, and a deep bond market, to assuredly achieve the required growth and development targets. Attractive instruments to appropriately channelize funds can systematically utilize the credit pool of US$ 230 billion currently available for infrastructure investments. Furthermore, specialized expertise for appraisal and monitoring of infrastructure financing, robust financial health, and judicious credit enhancement can distinctly improve the private lending ecosystem in India, opening doors to sectors beyond power and telecom.

More than 470 infrastructure projects, each worth INR150 crore – as estimated by The Ministry of Statistics and Programme Implementation - and currently impacted by cost overruns and time delays can also be notably better managed with the implementation of effective project monitoring and analytical appraisal systems.

The significance of NaBFID thus lies in its potential to play a key role in serving these purposes across infrastructure financing and provide a more stable source of funding. This is expected to not only stimulate economic development and employment creation but also improve the efficiency and transparency of infrastructure development in the country, through the adoption of best practices across project lifecycles.

NaBFID will also work towards developing a deep and liquid market for bonds, loans, and derivatives for infrastructure financing. It will specifically facilitate the development of relevant electronic and negotiated markets, enabling fair and accessible trade and exchange.

Eventually, the establishment of NaBFID is expected to have numerous broader benefits for the Indian economy. Spurring widespread infrastructural financing would help improve the overall investment climate in the country and encourage crowding in of private and foreign investment into the sector, employing a more attractive and viable option for high-volume financing.

NaBFID will play a pivotal role in helping India meet its arduous infrastructural resolve, by providing the necessary financing, expertise, technology, and analytics to support the development of this sector.