SIDBI launches a call for tenders for consultants to help set up 20,000 cr NaBFID

SIDBI on behalf of the government has launched a Request for Proposal (RFP) inviting bids from consultants to help set up 20,000 crore IFD called on the National Bank for Infrastructure and Development Finance (NaBFID) to catalyze investments in the underserved infrastructure sector.

In March, Parliament approved the National Bank for Infrastructure and Development Finance (NaBFID) Bill 2021 to support the development of long-term non-recourse infrastructure finance in India, including market development. bonds and derivatives needed to finance infrastructure.

The objective of the assignment is to select a management consultant to support the establishment of a development finance institution (DFI) infra, as a pan-Indian financial institution (AIFI) to provide, enable and catalyze the financing infrastructure, the RFP said.

Infra DFI is established by Act of Parliament as a statutory body to address market failures that arise from the long term, low margin and risky nature of infrastructure finance. The DFI would therefore have both development and financial objectives. To begin with, the institution will be 100 percent government-owned.

“A consultant would be needed to help ensure the successful launch of the newly formed Infra DFI. The work would require the development of products related to infrastructure finance and to allow more private capital to invest in infrastructure projects. It is also necessary to ensure that Infra DFI has a clear governance strategy and process as well as a clear roadmap for implementation, ”he said.

DFI should operate in a highly digital environment from the start, he added.

Accordingly, the scope of work would cover articulating a design basis for DFI in accordance with the intent and content of the NaBFID law of 2021 and supporting the development of institutional strengthening and development. a business strategy, including a business model and an operational plan.

In addition, the consultant should help define operational workflows, metrics and dashboards for business processes and performance and help develop a technology strategy with a short to medium term roadmap.

“The Small Industries Development Bank of India (SIDBI) is the issuing authority of this tender and will be responsible for all administrative matters relating to this tender until the board of directors of Infra DFI or its delegate decides otherwise, ”he said.

This government-owned DFI will help finance around 7,000 infrastructure projects under the National Infrastructure Pipeline (NIP) which provides for an investment of 111 lakh crore by 2024-25.

The DFI being created to finance the infrastructure sector will remain outside the remit of the CAG, CVC and CBI, an approach aimed at enabling faster decision-making.

In addition, the bill aims to provide 10-year tax relief so that it can provide affordable long-term funding to the infrastructure sector.

The government expects the DFI to use this fund to raise up to 3 lakh crore in the next few years.

During the pre-liberalized period, India had DFIs which were mainly engaged in the development of the industry.

ICICI and IDBI, in their previous avatars, were IFDs. Even the oldest financial institution in the country, IFCI Ltd, operated as a DFI.

In India, the first DFI was operationalized in 1948 with the creation of the Industrial Finance Corporation of India (IFCI).

Subsequently, the Industrial Credit and Investment Corporation of India (ICICI) was established with support from the World Bank in 1955.

The Industrial Development Bank of India (IDBI) was established in 1964 to promote long-term financing of infrastructure and industry projects. PTI DP MR MKJ MKJ

This story was posted from an agency feed with no text editing.

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