While the debate on regulating large conglomerates of financial companies continues, some experts argue that private (or market-based) regulatory mechanisms may be more efficient in certain cases compared to government regulatory mechanism. These experts argue that government regulators could be captured by special interests—of both the corporate and populist kind. And there is good reason to believe that instances of this kind have occurred in India, expe
Category: Infrastructure Finance
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Study suggests govt to encourage new funding sources
According to an industry study, there is an need to
encourage funding sources other than bank credit (like insurance) and introduction of new instruments to accelerate flow of funding to infrastructure sector. The study, conducted jointly by industry body ASSOCHAM and and consulting firm Deloitte points out that the change in BASEL III requirements and too much conc
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RBI wants banks to mitigate risks on infra loans
In a communication to banks, the the Reserve Bank of India (RBI) asked lenders to take steps to mitigate loans given for infrastructure projects under the public-private partnership (PPP) model. The RBI asked banks make provisions such as pre-determined increase in user charges for infrastructure projects in order to ensure sufficient risk mitigation. There has t
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World Bank agrees to lend Rs 11.6 bn for transport project
The Rs 2,403 crore second phase of the Kerala State Transport Project (KSTP) received partial funding from the World Bank. The multilateral lending agency signed a loan agreement with the Department of Economic Affairs to make available Rs 1,166 crore for the project. Under the second phase, the Kerala government would develop 367 km of state highways spread over eight
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SEIL hopes to borrow funds for pellet plant project soon
B Satish Kumar, Managing Director of Steel Exchange India (Seil) expressed hope that the firm may achieve financial closure for its proposed Rs 300-crore pellet plant by three-four months. He said the company is awaiting environment clearance for the proposed 600,000 tonne capacity unit which would come up at its existing steel plant and would help it cut production cost
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Passengers to pay Rs 5 a trip for Civil Aviation Authority
Passengers will have to pay Rs 5 on every air trip and the levy will be used to fund the proposed Civil Aviation Authority.
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Some analysts expect RBI to cut policy rate
The slowdown in economic growth and the government's commitment to reign in fiscal deficit may prompt Reserve Bank of India (RBI) to cut policy repo rate by 25 basis points in its monetary policy review in mid-March. The central bank may partly base its decision on the government's efforts to deliver fiscal consolidation as exemplified by the progress in 2012-13 and presented in th
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Govt takes steps to promote FDI
The central government is taking a slew of measures to promote foreign direct investment in Indian companies and thereby improve capital flows into the country. As part of this effort, the Department of Industrial Policy and Promotion (DIPP) would soon move a Cabinet note to amend the FDI policy to bring more clarity on the definition of ‘control’ in sync with that in the C
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Govt takes steps to promote FDI
The central government is taking a slew of measures to promote foreign direct investment in Indian companies and thereby improve capital flows into the country. As part of this effort, the Department of Industrial Policy and Promotion (DIPP) would soon move a Cabinet note to amend the FDI policy to bring more clarity on the definition of ‘control’ in sync with that in the C
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Tata Steel’s 6 mn tpa project may be operationally beneficial
According to analysts, the proposed 6 mn tpa (million tonnes per annum) steel plant by Tata Steel in Odisha would be operationally beneficial for the company. This is because the proposed plant would have captive iron ore reserves, efficient logistical infrastructure reducing costs and technologically efficient plan