Government to launch Rs.500 crore fund

The government will launch a Rs 500 crore credit enhancement fund in July to boost infrastructure financing which presently is facing major headwinds. The announcement for the fund was first made in Budget 2016-17 and since then it has been witnessed multiple deadline revisions. The previous plan was to launch it in March 2018. The government will be launching the fund an Asian Infrastructure Investment Bank will take up 10% equity in the same. India Infrastructure Finance Company Limited or IIFCL is the lead promoter of the fund with 22.5% holding and other stakeholders include Life Insurance Corporation of India, State Bank of India, Bank of Baroda and AIIB. The government will hold 49% stake and the fund will operate as a Non-Banking Finance Company. The World Bank had shown interest in the fund but wanted to pledge for a bigger, Rs 5,000 crore. While the government wanted to begin with a smaller equity size of Rs 500 crore.

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  • The banking system does a bulk of infrastructure project financing and exposes itself to asset liability management mismatches and hence, alternatives like raising of money through corporate bonds are necessary.
  • The announcement for the fund was first made in Budget 2016-17 and since then it has been witnessed multiple deadline revisions.
  • The previous plan was to launch it in March 2018.
  • The government will be launching the fund an Asian Infrastructure Investment Bank will take up 10% equity in the same.
  • The World Bank had shown interest in the fund but wanted to pledge for a bigger, Rs 5,000 crore.
  • India Infrastructure Finance Company Limited or IIFCL is the lead promoter of the fund with 22.5% holding.

Download our current affairs mobile app: IQRACE

Union Finance Minister Arun Jaitley announced Operation Green for promoting farmer produce organizations. While announcing the Budget, 2018, Jaitley allocated Rs 500 crore for the same. He also allotted Rs 2,000 crore to improve the agriculture sector. Agri-Market Development Fund with a corpus of 2000 crore to be set up for developing agricultural markets. Government’s aim is to generate farm and non-farm employment for farmers.

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