Context: 

The NaBFID aims to disburse about ₹60,000 crore by the end of this fiscal, having lent ₹8,000 crore already in the first quarter.

About NaBFID:

• It is set up as the principal Development Financial Institution (DFIs) for infrastructure financing.  
• It is a corporate body with authorised share capital of one lakh crore rupees.  
• Shares of NBFID may be held by: (i) Central Government, (ii) Multilateral Institutions, (iii) Sovereign Wealth Funds, (iv) Pension Funds, (v) Insurers, (vi) financial institutions, (vii) banks, and (viii) any other institution prescribed by the central government.  
• Initially, the central government will own 100% shares of the institution which may subsequently be reduced up to 26%.

Functions of NaBFID: 

• Extending loans and advances for infrastructure projects.
• Taking over or refinancing such existing loans.
• Attracting investment from private sector investors and institutional investors for infrastructure projects.
• Organising and facilitating foreign participation in infrastructure projects.
• Facilitating negotiations with various government authorities for dispute resolution in the field of infrastructure financing.
• Providing consultancy services in infrastructure financing. 

Source of Funds: 

• NaBFID may raise money in the form of loans or otherwise both in Indian rupees and foreign currencies, or secure money by the issue and sale of various financial instruments including bonds and debentures.  
• NaBFID may borrow money from: 
  1. Central government
  2. Reserve Bank of India (RBI)
  3. Scheduled commercial banks
  4. Mutual funds
  5. Multilateral institutions such as World Bank and Asian Development Bank.

News Source: The Hindu

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