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Finance Minister Nirmala Sitharaman has suggested that the New Development Bank (NDB) facilitate private sector participation and explore more innovative financing structures.

Addressing the 6th Annual Meeting of Board of Governors of the New Development Bank through video-conference, she highlighted the role of Development Financial Institutions (DFIs) in infrastructure financing and mentioned that India is going to set up a new DFI with initial paid-up capital of around $3 billion with a lending target of $69 billion in next three years, said an official statement.

She also suggested that the NDB develop a synergistic relationship with these institutions that share its development priorities to achieve greater results.

"The Finance Minister encouraged the NDB to facilitate private sector participation, explore more innovative financing structures, discover co-financing opportunities with other MDBs, develop a pipeline of bankable projects, and promote environmental and social safeguards to enhance the sustainability of infrastructure, etc," it said.

Sitharaman also stressed the need for the NDB to maintain and improve upon the ratings assigned by international rating agencies through adequate capitalisation, high quality governance and prudent management.