Devraj Singh, Executive Director - Tax & Regulatory Services, EY India discusses various issues related to FDI in the Indian infrastructure sector. What has been the trend of FDI inflows into the Indian infrastructure sector in the last decade
IDFs play a vital role as investment vehicles that can be sponsored by NBFCs and commercial banks in India. Shrikanth S writes on how IDFs are correcting the asset-liability mismatch, and also help advance loans for fresh infrastructure projects. The urgent need to improve infrastructure prompted the Indian Planning Commission to estimate infrastructure spending in the 12th Five Year Plan (2012-17).
Sadashiv Rao, Chief Risk Officer, IDFC Ltd tells Rahul Kamat that IDF-NBFC is a safer route compared to IDF-Mutual Fund, as in the latter, the fund manager can invest in any project (under construction) which will have risk involved in it, and investors may not like to invest in high-risk projects.
Is the worst over for infrastructure? The fact that this question lingers is perhaps testimony to the uncertainty that prevails. Unrealistic bids, bureaucratic slowdown, social groundswell, coal scam, mining scam ... the list of factors that has created seemingly unstoppable negativity seems daunting. The government mainly the Prime MinisterÂ´s Office had to repeatedly intervene to address frustratingly sticky problems confronting the infrastructure sector.
India Infradebt (Infradebt), which is the countryÂ’s first Infrastructure debt funds (IDFs) in the NBFC format, completed its first transaction by refinancing a road project of Zirakpur-Parwanoo section of NH-22. The stretch is built by Himalayan Expressway, which is part of Jaiprakash Group. The debt fund is sponsored by ICICI Bank along with Bank of Baroda, Citigroup and LIC
Following the approval of new norms by the board of the Employees' Provident Fund Organisation, the pension fund may invest part of its Rs 5 trillion corpus in infrastructure debt funds (IDFs). The new norms allow the pension fund body to invest in bonds with tenures up to 25 years and this may enable it to consider IDF
Employing probabilistic risk models could provide an objective basis of evaluating and tracking risks as they wax and wane through the project stages. Infrastructure projects are all about taking calculated risks, but before taking the risks, one needs to calculate them well,