India's NBCC plans to establish an NBFC to lower borrowing costs for infrastructure projects, potentially saving $108m in interest over two years.

India's state-run NBCC plans to set up a non-banking finance company (NBFC) to lower its borrowing costs for key infrastructure projects, with estimates of saving $108 million in interest costs over the next two years. The Indian government owns infrastructure financial institutions but no other state-run company has created a unit to help it finance projects. NBCC's board discussed the proposal to set up a shadow lender in March, and the final structure of the NBFC will be decided after June.