The government of india is considering to introduce a new bill “National Bank for Financing Infrastructure and Development Bill of 2021” in the ongoing budget session of the parliament. The bill will be passed with the objective of setting up a new development finance institution so as to finance the infrastructure projects.
Development Finance Institution
- The Union finance ministry had started working on the structure of a new DFI in 2020.
- Development Finance institution will be a specialized institution to provide funds for the infrastructure projects. The DFI will be backed by government.
- It will help in funding the projects under the National Infrastructure Pipeline.
- The new DFI will act as a provider, enabler and catalyst for infrastructure financing.
- DFI is also the principal financial institution and development bank to build and sustain a supportive ecosystem during the life cycle of the infrastructure projects.
National Infrastructure Pipeline
It is a group of social and economic infrastructure projects. The project has been launched for a period of five years. The project has an initial sanctioned amount of Rupees 102 lakh crore. The pipeline project was first announced by the PM Modi during the 2019 Independence Day speech.
Parliament of India
It is the supreme legislative body of India. Parliament of India is a bicameral legislature that comprises of the President of India and the both houses namely Rajya Sabha (Upper House) and Lok Sabha (Lower House). The President of India being the head of legislature has powers to summon and prorogue either house of Parliament. He has also the power to dissolve the Lower House. However, he can exercise these powers only on the advice of the Prime Minister of India and his Union Council of Ministers.
Sessions of the Parliament
The period for which the both House of the parliament meets to conduct its business is called a session. The Indian Constitution has given power to the President of India to summon each House. The Gap between two sessions of the parliament should not be more than a 6-month. Thus, the Parliament must meet at least twice in a year. The Parliament conducts 3 sessions every year in India:
- The Budget session that runs from January or February to May
- The Monsoon session that runs from July to August or September
- The Winter session that runs from November to December.
Financing Bank to be set up National Infrastructure Pipeline Financing Bank to be set up National Infrastructure Pipeline