New financing for infrastructure

Mechanisms for funding infrastructure projects in India are gradually falling in place. Recently, three institutions — IIFCL, LIC and IDFC — entered into a memorandum of understanding (MoU) to provide ‘takeout' finance for up to 50 per cent of the total project cost on which banks initially extend credit. There is no dearth of funds available with banks; the problem lies in their predominantly short-term deposit tenure, with a significant part maturing in less than a year.

Read Full Story>>