New Delhi: A Credit Guarantee Enhancement Corporation is to be set up in 2019-20. This was announced by the Union Minister of Finance and Corporate Affairs, Nirmala Sitharaman, while presenting the Union Budget 2019-20 in Parliament today.
The Finance Minister further said that we recognize that investment-driven growth requires access to low cost capital. It is estimated that India requires investments averaging Rs. 20 lakh crore every year (USD 300 billion a year).
The Finance Minister further added that a number of measures are proposed to enhance the sources of capital for infrastructure financing, which are as follows;
A Credit Guarantee Enhancement Corporation for which regulations have been notified by the RBI, will be set up in 2019-20.
To permit investments made by FIIs/FPIs in debt securities issued by IDF-NBFCs to be transferred/sold to any domestic investor within the specified lock-in period.