Sustainable Infrastructure: Debt Financing
Shiva Rajaraman, CEO of NIIF IFL, discusses the changes in the infrastructure landscape in the country, policy back-ups and different sources of infrastructure finance that have opened up in the country. With a balance sheet of an impressive Rs.210 billion with zero per cent NPAs, NIIF IFL is an infrastructure debt fund (IDF) that provides innovative and sustainable financing to infrastructure projects in the country.
What are the sources of infrastructure finance in India? What is the sector-wise break-up of your portfolio?
These are Market Size and players. Let me first provide a context to the discussion in terms of size of the market in India for infrastructure finance. India’s GDP is around $3,800 billion. Infrastructure spending in India (including private sector/Public Private Partnership projects and government spending), is around 6 per cent of the GDP, i.e., $230 billion. Out of this, private sector/ PPP projects are our focus area, which is around 25 per cent i.e., $60 billion…