NDB in GIFT City
New Development Bank (NDB) is set to become the first multilateral agency to open an office in Gujarat International Finance Tech City (Gift).
- New Development Bank has received the approval for the same.
- It will open the office in GIFT City in May 2022.
- Indian office will help in identifying suitable projects and try to create a pipeline of potential financing for NDB.
- NDB is also expected to partner with the newly launched National Bank for Financing Infrastructure and Development (NBFID), in a bid to support crucial infrastructure projects across India.
About the New Development Bank
The New Development Bank was set up by BRICS countries (Brazil, Russia, India, China, and South Africa). It was set up in 2014, with the objective of mobilizing resources for infrastructure and sustainable development projects in BRICS and emerging markets. The bank became operational in 2015. It is headquartered in Shanghai, China. It is equally own by all the founding members.
National Bank for Financing Infrastructure and Development (NBFID)
NBFID was set up as a corporate body, with authorised share capital of 1 lakh crore rupees. It was established with the objective to lend, invest or attract investments directly or indirectly for infrastructure projects located entirely or partly in India. It seeks to facilitate the development of market for bonds, loans, as well as derivatives for infrastructure financing.
Funds to NBFID
NBFID may raise money in the form of loans or otherwise in Indian rupees and foreign currencies. It can also secure money by issuing and selling various financial instruments like bonds and debentures. It may borrow money from central government, Reserve Bank of India (RBI), mutual funds, scheduled commercial banks, and multilateral institutions like World Bank and Asian Development Bank.
What are the functions of NBFID?
- To extend loans and advances for infrastructure projects.
- To take over or refinance such existing loans.
- To attract investment from private sector investors and institutional investors for projects.
- To organise and facilitate foreign participation in infrastructure projects.
- To facilitate negotiations with various government authorities
- To provide consultancy services in infrastructure financing.
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