Lok Sabha Question No. 3086 (UNSTARRED), answered on 2021-03-15
Subject: Investments for Economic Growth
Ministry: FINANCE
Asked by: Raghu Ramakrishna Raju Kanumuru

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO. 3086

TO BE ANSWERED ON MONDAY, MARCH 15, 2021/24 Phalguna, 1942 (Saka)

## INVESTMENTS FOR ECONOMIC GROWTH

## 3086. SHRI KANUMURU RAGHU RAMA KRISHNA RAJU:

## Will the Minister of FINANCE be pleased to State:

- (a) whether the Government has been contemplating on infusing more investments prioritising growth of infra and health sectors to streamline the economy;
- (b) if so, the details thereof;
- (c) whether the Government as a part of this objective is planning to garner the necessary funds by adopting disinvestment in government companies and selling some of the stakes to reset the economy; and
- (d) if so, the details thereof?

## ANSWER

## MINISTER OF STATE (FINANCE)

(SHRI ANURAG SINGH THAKUR)

- (a) & (b) To encourage investments in infrastructure including health sector, the following measures have been announced by the Government recently:
- i. Amendments  in  the  Securities  Contract  (Regulation)  Act,  1992  along  with  consequential amendments in the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 and the Recovery of Debts and Bankruptcy Act, 1993, to enable debt financing of Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs) by Foreign Portfolio Investors included in the Finance bill 2021.
- ii. Amendments to Section 2 (48) of the Income Tax Act to enable Infrastructure Debt Funds to issue Zero Coupon Bonds included in the Finance bill 2021.
- iii. In the Budget 2020-21, 100 per cent tax exemptions, subject to certain conditions, were granted to foreign Sovereign Wealth Funds (SWF) and Pension Funds on their income from investment in Indian infrastructure. The benefit has extended to SWFs and Pension Funds investing in a Non-Banking Financial Company registered as an Infrastructure Finance Company (NBFCIFC),  or  in  a  Non-Banking  Financial  Company  registered  as  an  Infrastructure  Debt  Fund (NBFC-IDF)  or  in  a  domestic  company  having  not  less  than  75  per  cent  investment  in  a company  carrying  on  the  business  of  developing,  or  operating  and  maintaining  any infrastructure facility, and also in a Category I or Category II Alternative Investment Funds (AIF)  which  has  invested  in  an  Infrastructure  Investment  Trust  (InvIT),  subject  to  certain conditions included in Finance bill 2021.
- iv. The  Scheme  for  Financial  Support  revamped  to  Public  Private  Partnership  (PPPs)  in Infrastructure [Viability Gap Funding (VGF)] and extended till 2024-25, which also includes schemes for Health Sector.

Further, the Government, on taking a holistic approach to health sector, has allocated an amount of Rs. 2,23,846 Crore for  Health and  Wellbeing expenditure in 2021-22 with focus on strengthening three areas viz. Preventive, Curative, and Wellbeing.  Besides specific provisions for the Ministry of Health & FW and Ministry of Ayush, it also has provisions for CoVID vaccination, Drinking water and Sanitation, Nutrition and Finance Commission Grants for Health and Water & Sanitation.

Cabinet in its meeting held on 25.11.2020, approved an equity infusion of Rs 6000 crores in NIIF Infrastructure Debt Financing Platform, comprising of Assem Infrastructure Finance Limited (AIFL) and NIIF Infrastructure Finance Limited (NIIF-IFL)   The capital infusion will help in substantially scaling up the two institutions that specialize in infrastructure financing, which can attract both debt and equity investors who are keen to be associated with infrastructure.  NIIF was created in the year 2015 with the objective of attracting equity investments from both domestic and international sources for  infrastructure  development  in  commercially  viable  projects,  both  greenfield  and  brownfield, including stalled projects.

(c  )  &  (d) The  Government  follows  a  policy  of  disinvestment  through  Strategic  Disinvestment/ Privatization  (substantial  sale  of  Government  shareholding  of  CPSEs  along  with  transfer  of management control) and Minority stake sale for benefiting the economy in terms of transfer of new technology, growth in employment and GDP etc., the receipts from disinvestment of CPSEs are also utilized  for  funding  of  development  and infrastructure projects.    Since  2016,  Government  has  'in principle' approved strategic disinvestment in 35 cases.