Shri M. Nagaraju, Secretary, Department of Financial Services (DFS), chaired a meeting today to discuss issues related to financing in Infrastructure Sector. The meeting was attended by senior management of major Public Sector Banks, Private Sector Banks, Development Financial Institutions and NBFC-IFCs.

Some of the key issues discussed were gap in availability of financing, barriers to issue of Municipal bonds, enhancing capacity building & training and better availability of data on defaults and recoveries. Various measures/recommendations were put forward on issues related to financing in Infrastructure Sector.

It was agreed that National Bank for Financing Infrastructure and Development will be consulting all concerned stakeholders and submit a report to the Department of Financial Services within 15 days.

Infrastructure financing: coordinated stakeholder consultation initiated, with a mandate for prompt reporting and measures to address financing gaps. Infrastructure financing coordination was advanced through a DFS chaired meeting identifying impediments-financing shortages, municipal bond issuance barriers, capacity gaps, and poor data on defaults and recoveries-and recommending measures including capacity building and improved data. The National Bank for Financing Infrastructure and Development will consult stakeholders and submit a consolidated report with recommendations to the Department of Financial Services within a short timeframe to guide policy and operational responses.