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Tag: IDFs
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Minister suggests lenders to offload loans to IDF
Banks must hand over their loan for infrastructure projects to Infrastructure Debt Funds (IDFs) once the projects are completed so that banks can get funds to lend to fresh projects. Finance Minister P Chidambaram suggested this to banks recently. IDF provides long term finance through the lif
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Investors would love to invest in India if we get our act right
There are mainly three reasons. First and the most immediate one is government departments are not paying in time. For instance, NHAI dues are aggregating upwards of Rs 25,000 crore. Some are disputed and others are not. If you ask NHAI they will deny any payments are due, but that is not the [right] answer. The government will need to be practical, in that somebody has done the work and money has been spent.
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Insurance and pension funds are best suited for infra investments
Since infra projects are long term projects, Infrastructure Debt Fund (IDF) can bring in the big push in the sector as innovative means of credit enhancement is expected to provide long term, low cost debt, says D. V Prasad, Head-Finance, Essar Projects, in an interaction with Sumantra Das.
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Consider development in addition to projects
Institutional investment in the recently introduced IDFs will require sovereign guarantees. Projected not merely as a factor of a single project but for several projects in a developmental cluster, such government guarantees can reduce the chances of the risk.
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Infrascape 2012 | Finance: IDFs won't attract global investments
The challenges this year have had little to do with the availaĂÂbility of finance, but with the poor bankability of infrasĂÂtructure projects. The inability of the goĂÂveĂÂrnment to honour agreements (tariff increases, coal linkages, enĂÂviroĂÂnment clearanĂÂces,
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A new opportunity to participate in Indian infrastructure
The government is finally preparing to launch its first IDF this year, albeit with a $3 billion corpus open to domestic investors alone. Vishal Shah and Smit Sheth hail IDF as a good beginning, but contend that the definition of infrastructure needs to be sharpened.
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Given banks' experience, it'd be advantageous for them to launch IDFs
How will banks respond to the IDF allowance by the government? BK Batra, Executive Director, IDBI Bank, explains that this well thought-out scheme nevertheless needs to be tweaked to be fully productive.
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Banks should be nodal agencies to IDF
S Vishvanathan, MD and CEO, SBI Capital Markets, explains why the regulators of IDF have taken a rather cautious approach in developing it, and suggests that banks can take on the initial risk and then pass it on to IDFs-thus retaining the asset throughout the project.
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Not enough credit enhancements
While in theory, the idea behind setting up IDFs is sound, the two structures proposed by the Ministry of Finance at present do not appear to have enough credit enhancement mechanisms to bring in domestic and foreign long term institutional investors, says Amit Dinakar.
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