SIDBI INVITES BID TO SET UP NaBFID

SIDBI INVITES BID TO SET UP NaBFID

Subject : National Organizations

Context : SIDBI on behalf of the government has floated Request for Proposal (RFP) inviting bids from consultants to help set up Rs 20,000 crore DFI called National Bank for Financing Infrastructure and Development (NaBFID) to catalyse investment in fund-starved infrastructure sector.

Concept:

• Parliament in March cleared National Bank for Financing Infrastructure and Development (NaBFID) Bill 2021 to support the development of long-term non-recourse infrastructure financing in India, including the development of the bonds and derivatives markets necessary for infrastructure financing.
• The objective of the assignment is to select a management consultant to support in the setting up of an infra Development Finance Institution (DFI), as an All-India Financial Institution (AIFI) to provide, enable and catalyse infrastructure financing, the RFP said.
• The Infra DFI is being established through an Act of Parliament as a statutory body.

Small Industries Development Bank of India (SIDBI)

• SIDBI is the principal development financial institution for promotion, financing and development of Micro, Small and Medium Enterprises (MSME) sector in India.
• It was established on April 2, 1990 through an Act of Parliament (thus, it is statutory body).
• It is headquartered in Lucknow, Uttar Pradesh.
• SIDBI aims to facilitate and strengthen credit flow to MSMEs and address both financial and developmental gaps in MSME eco-system across the country.
• It co-ordinates functions of institutions engaged in similar activities.
• Currently, the shares of SIDBI are held by Central Government and 29 other institutions including public sector banks (PSBs), insurance companies owned and controlled by Central Government.