Cabinet approves infusion of Rs 6000 crore in NIIF; Lakshmi Vilas Bank to be merged with DBS Bank India Limited
Union Cabinet has approved equity infusion by Government of Rs 6000 crore in NIIF Debt Platform sponsored by National Investment and Infrastructure Fund (NIIF), comprising Aseem Infrastructure Finance Limited and NIIF Infrastructure Finance Limited.
Union Cabinet has approved equity infusion by Government of Rs 6000 crore in NIIF Debt Platform sponsored by National Investment and Infrastructure Fund (NIIF), comprising Aseem Infrastructure Finance Limited and NIIF Infrastructure Finance Limited. This was one of the twelve key measures made by the Finance Minister as part of Government's stimulus to the economy, under AatmaNirbhar Bharat 3.0 on November 12, 2020.
Prakash Javadekar, the Minister of Information, in a tweet today said, "#Cabinet today approved Rs 6000 crore of capital infusion in the National Investment and Infrastructure Fund (NIIF) for creating rapid infrastructure. NIIF will mobilise 1 lakh 10 thousand crores for infrastructure. #CabinetDecisions".
NIIF Infrastructure Debt Financing Platform is expected to contribute nearly Rs 1 lakh crore in debt to the infrastructure sector over the next five years. This will act as a catalyst in attracting more investments into the infrastructure sector as envisaged in the National Infrastructure Pipeline.
Speaking to the media in New Delhi about Cabinet decisions, Information and Broadcasting Minister Prakash Javadekar informed that Cabinet has approved Scheme of Amalgamation of Lakshmi Vilas Bank (LVB) with DBS Bank India Limited. He said with this, there will be no further restrictions on the depositors regarding the withdrawal of their deposits. Mr Javadekar said, speedy amalgamation and resolution of the stress in LVB is in line with Government's commitment to a clean banking system while protecting the interests of depositors and the public as well as the financial system.
Cabinet was apprised of a Memorandum of Understanding (MoU) on Cooperation in the field of Physical Culture and Sport signed among BRICS Countries.
Cooperation in the field of sports among the five countries will help in expanding knowledge and expertise in the area of sports science, sports medicine, and coaching techniques. This would result in improvement in the performance of Indian sportspersons in international tournaments and the strengthening of bilateral relations with BRICS member countries.
Mr Javadekar also informed that CCEA has approved FDI of Rs 2480 crore in M/s. ATC Telecom Infrastructure Private Limited by M/s. ATC Asia Pacific Pvt Ltd. This would lead to foreign direct investment inflow of Rs 2480.92 crore. The inflow of foreign investment to India will spur economic growth; as well as foster innovation.
Customers, including depositors of the Lakshmi Vilas Bank Ltd. will be able to operate their accounts as customers of DBS Bank India Limited with effect from November 27, 2020. The moratorium on Lakshmi Vilas Bank Ltd will cease to be operative from that date.