The RBI has allowed banks to extend loans up to Rs 10 lakh to individuals against long-term infrastructure bonds issued by them, thus easing loan norms for low-cost housing.
Aviation Finance Corporation (AFC), an SPV providing dedicated capital, can be set up by the government to facilitate lower interest rates and longer maturity of loans. Private airport operators should be allowed to issue long term non-taxable infrastructure bonds to raise the required funding from the market. RBI limits on sectoral funding should be eased, thereby removing the current compulsion for airport developers to raise required funds/debt from multiple banks, making process time consumi
With an objective to finance modernisation of non-metro airports, State-run Airports Authority of India (AAI) on October 31 said that it will soon approach the Union Finance Ministry afresh with the proposal to raise funds through a Rs 3,000-crore infrastructure bonds.
In a move to stimulate the foreign flows into infrastructure bonds, the Finance Ministry has eased norms for foreign institutional investors (FIIs) for investing in long term infrastruÂcture bonds. To lure FIIs, it has reduced lock-up period on such holdings to one year from three years for a five-year bond for overseas institutions investing up to $5 billion in infrastructure bonds.