New Delhi, March 16 (IAN) The Union Cabinet on Tuesday cleared a budgetary proposal to set up a dedicated infrastructure lender.

To give a push to infrastructure creation a Development Financial Institution (DFI) will be set up accordingly. The DFI is expected to give a massive lending push worth around Rs 3 lakh crore in the next few years.

The DFI was proposed in the Union Budget 2021-22 by Finance Minister Nirmala Sitharaman.

Addressing the media after the cabinet meeting here, Sitharaman said that the DFI will be formed with a seed capital of Rs 20,000 crore. It will be managed by a professional board and is expected to attract capital from the market.

A development finance institution provides risk capital for key infra projects. It is considered as a key ingredient for a sustainable and fast infra creation.

--IANS rv/sn/in