Notification of National Bank for Financing Infrastructure and Development (Removal of Difficulties) Order, 2021

## Report on the National Bank for Financing Infrastructure and Development Removal of Difficulties Order, 2021 **1. Executive Summary:** This report analyzes the National Bank for Financing Infrastructure and Development Removal of Difficulties Order, 2021 (hereafter, "the Order"), which constitutes an amendment to the National Bank for Financing Infrastructure and Development Act, 2021. The core purpose of the Order, as indicated by the provided text, is to address a procedural difficulty regarding the composition of the first Nomination and Remuneration Committee. Specifically, the Order clarifies the appointment process for the initial committee, ensuring its timely formation and proper functioning. The key finding is that the amendment grants the Central Government the authority to nominate the Chairperson and directors for the first Nomination and Remuneration Committee, streamlining the initial setup process. **2. Introduction:** This report aims to provide a comprehensive overview of the National Bank for Financing Infrastructure and Development Removal of Difficulties Order, 2021. The analysis is based solely on the provided official text and focuses on the changes introduced by the Order, its likely rationale, and potential impact. **3. Policy Overview:** * **Amendment to:** National Bank for Financing Infrastructure and Development Act, 2021. * **Core Objective(s):** Based on the text, the core objective of this amendment is to facilitate the smooth and efficient establishment of the National Bank for Financing Infrastructure and Development (NaBFID) by addressing potential roadblocks in forming the initial Nomination and Remuneration Committee. **4. Background and Rationale:** Since this is an amendment, the rationale focuses on the specific change. The provided text suggests that a potential difficulty or ambiguity existed within the original Act regarding the composition of the *first* Nomination and Remuneration Committee. This amendment likely addresses a concern that the standard appointment procedures, as outlined in Section 6(1)(d) of the Act, might be cumbersome or time-consuming for the initial committee formation. By granting the Central Government the power to nominate the Chairperson and directors for the *first* committee, the amendment aims to expedite the process and ensure the NaBFID can begin operations without delay. **5. Key Provisions / Changes:** This section focuses specifically on the *changes* introduced by the provided amendment text: * **Specific Part of Original Policy Changed:** Section 15, subsection 1 of the National Bank for Financing Infrastructure and Development Act, 2021. * **New Rule/Provision:** A *proviso* is inserted into Section 15(1) stating: "Provided that, the first Nomination and Remuneration Committee shall consist of the Chairperson and the directors nominated by the Central Government under clause d of subsection 1 of section 6." * **Difference/Effect of Change:** This amendment bypasses the standard nomination process (presumably laid out elsewhere in the Act) for the *initial* Nomination and Remuneration Committee. It gives the Central Government direct authority to appoint the Chairperson and directors for this first committee. This is a temporary measure, applicable only to the first committee. The effect is to accelerate the committee's formation and ensure the NaBFID can become operational more quickly. **6. Target Audience and Stakeholders:** The primary target audience and stakeholders directly affected by this amendment are: * The Central Government (specifically, the Department of Financial Services, Ministry of Finance), as it is conferred with the power to nominate the initial Nomination and Remuneration Committee. * The National Bank for Financing Infrastructure and Development (NaBFID) itself, as the amendment is directly related to its organizational structure and governance. * Prospective members of the Nomination and Remuneration Committee. * The Infrastructure and Development Sector, as the amendment aims to ensure smooth functioning of the NaBFID. **7. Implementation Aspects (Inferred):** * **Responsible Agency/Bodies:** The Department of Financial Services, Ministry of Finance, is responsible for implementing this amendment by nominating the Chairperson and directors for the first Nomination and Remuneration Committee. * **Timelines/Procedures:** The amendment stipulates that the Central Government needs to nominate the Chairperson and directors for the *first* Nomination and Remuneration Committee, and implies this should be done as soon as possible to facilitate the NaBFID's establishment. No specific timeline is provided in the text. The mechanism of how the Central Government will select and nominate these individuals is not specified in the provided text. **8. Expected Outcomes / Impact of Changes:** The likely intended outcome of this amendment is to expedite the establishment of the Nomination and Remuneration Committee within the NaBFID. This, in turn, is expected to lead to: * Faster operationalization of the NaBFID. * Reduced delays in key decision-making processes related to infrastructure financing and development. * A more efficient and effective NaBFID due to a streamlined setup process. **9. Conclusion:** The National Bank for Financing Infrastructure and Development Removal of Difficulties Order, 2021, represents a targeted amendment designed to address a potential hurdle in the establishment of the NaBFID. By granting the Central Government the authority to nominate the Chairperson and directors for the initial Nomination and Remuneration Committee, the amendment aims to accelerate the bank's operationalization and contribute to its effective functioning. This amendment is significant because it demonstrates a proactive approach to ensuring the NaBFID can fulfill its mandate of promoting infrastructure and development in a timely manner.

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