After years, Govt plans new development bank for big infra funding

The mechanism to raise the funds to provide the compensation was the GST Compensation Fund. The mechanism was in aid of the obligation, not that the obligation was subject to the mechanism — a point conveniently ignored by the Finance Minister and her officials.

YEARS AFTER some of India’s biggest Development Finance Institutions (DFIs), such as ICICI, IDBI, IFCI and IRBI, either reinvented themselves or faded away, the government is veering towards setting up a new DFI essentially to fill the gap in long-term finance for infrastructure sectors.

“Discussions have been held at the highest…