The National Bank for Financing Infrastructure and Development (NaBFID) has started lending to infrastructure projects. Last month, NaBFID lent Rs. 520 crore to fund the Banihal Qazigund Road Tunnel. Banihal Qazigund Road Tunnel is one of the longest tunnels in India, with a length of 8.45 km. The tunnel reduces the distance between Srinagar and Jammu by 16 km. It also reduces the travel time between these cities from 6 hours to 5.5 hours.
NaBFID was set up as a development finance institution (DFI) to provide long-term infrastructure finance. It is the fifth development finance institution set up by the government, the others being EXIM Bank, National Bank for Agriculture and Rural Development (NABARD), National Housing Bank (NHB), and Small Industries Development Bank of India (SIDBI).
In this quarter, NaBFID plans to invest Rs.15,000 crore in infrastructure projects. The institution is keen on tapping sectors like social infrastructure, data centres, and ESG sectors and plans to raise five-year bonds of Rs. 5,000 to Rs. 10,000 crores for the first time within the next few months.
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