The government is likely to clear a new financing tool, which would help infrastructure project developers access funds at a cheaper rate based on a guarantee and also free funds for banks to lend to industry and retail borrowers. In the beginning, this product would provide funding support of around Rs 15,000 crore. The proposal, which will be considered by the Finance Ministry, envisages a guarantee by government promoted Indian Infrastructure Finance Company (IIFCL) which will subscribe to 25-50 per cent of the bonds being issued by the infrastructure company. This will be bacÂked by an insurance cover by the Asian Development Bank (ADB) to the tune of 50 per cent of IIFCL's exposure.
FlashNews:
Avoid Tunnel Vision Syndrome
World Cement Association Founder Director to be star speaker at Indian Cement Review Conference 2023 at 14th Cement EXPO, Delhi
Jury selects Indian Cement Review award winners; Awards to be presented at Cement EXPO 2023
14th Cement EXPO to kick-start from Dec 14, 2023 in New Delhi
Indian road sector: Highway of economic growth
Innovations in CE to meet tomorrow’s infrastructure needs
Unlocking investment potential in the North East region
Why carbon data is the key to improving sustainability and reducing emissions
Infrastructure: The growth catalyst of Indian economy
Reinforcing compliance management in industrial estates
Digital twinning: Keeping structural designs alive in perpetuity
Innovative technologies to construct green resilient roads
Laying the concrete foundation for India’s economic triumph
Warehousing, now a serious player’s playground in India
Supply chain drives growth for India’s logistics sector
Wooing investors to unlock India’s infrastructure potential
NF Railway enabling sustainable infra growth of North East
Four pillars of development for India’s IT infrastructure
A deep dive into India’s four pillars of economy
Home » New financing tool to boost infra funding
Leave a Reply
You must be logged in to post a comment.