New Indian infra bank to boost water projects

India’s central government has approved the formation of a national development finance institution (DFI) to back water projects and other key infrastructure initiatives across the country.

The National Bank for Financing Infrastructure and Development (NaBFID) was announced in the country’s budget earlier this year with initial government equity backing of $2.7 billion. It is expected to raise more than $40 billion in long-term funding to support infrastructure projects.

The formation of the DFI is expected to boost the execution of water projects in the $1.92 trillion National Infrastructure Pipeline (NIP), which was announced in late 2019 with a completion timeline of 2025. Of the 7,671 project opportunities listed as part of the NIP, there are 1,230 water sector projects worth $290 billion across irrigation, storm water drainage, water treatment, wastewater treatment, and sewerage infrastructure.