FSDC meeting on September 3; to assess the economy and financial industry.

Finance Minister Nirmala Sitharaman convened a meeting of the Financial Stability and Development Council (FSDC) on September 3 to discuss the health of the financial sector and a strategy to aid the pandemic-affected economy’s embryonic recovery. This will be the FSDC’s 24th meeting and the first of the current fiscal year. The most recent meeting took place on December 15, 2020.

The meeting will take place soon after first-quarter GDP figures showed a growth of roughly 20%, compared to a fall of 24.4% in the previous financial year’s quarter.

Some macroeconomic indicators, including tax mobilisation, credit growth, manufacturing increase in specific sectors, and export growth, are showing signs of a nascent recovery.

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According to sources, the FSDC meeting will be placed through video conferencing on Friday.

According to sources, the finance minister may ask financial sector regulators to loosen and harmonise investment criteria for infrastructure investment trusts (InvITs), which are used to monetize public assets such as motorways, power lines, and railway tracks.

Sitharaman unveiled a Rs 6 lakh crore National Monetisation Pipeline (NMP) earlier this month, with the goal of unlocking value in infrastructure assets ranging from power to roads and railroads.

The Union Budget for the years 2021-22 identified the monetisation of running public infrastructure assets as a crucial source of long-term infrastructure funding.

The Budget included funding for the creation of a “National Monetisation Pipeline” of prospective brownfield infrastructure assets to help with this. The NMP study was created by NITI Aayog in collaboration with infrastructural ministries.

The asset pipeline under the NMP is estimated to be worth Rs 6 lakh crore over the next four years. The anticipated cost is equal to 14% of the Centre’s proposed outlay under the National Infrastructure Pipeline (Rs 43 lakh crore).

Anchorage Infrastructure Investment Holding’s FDI request of Rs 15,000 crore has been approved by the CCEA. 

The conference will also include senior officials from the Finance Ministry.

The FSDC is scheduled to examine several areas of the government’s stimulus initiatives, which were issued in response to the pandemic’s economic crisis.

Members of the FSDC include the Governor of the Reserve Bank of India, as well as the heads of the Securities and Exchange Board of India, the Insurance Regulatory and Development Authority of India, the Pension Fund Regulatory and Development Authority, and the International Financial Services Centres Authority.

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