CHEAPER IIFCL LOANS FOR PVT. INFRA STRUCTURAL COs
Private Companies may soon be able to access low-cost government funds for infrastructure development. They are eligible for both direct lending as well as refinance from the special purpose
vehicle (SPV) created for the purpose. The SPV shall finance only commercially viable projects. Total lending for private projects will, not exceed 20% of the lending programmes of SPV in any accounting years. The SPV, known as Indian Infrastructure Company Ltd. (IIFCL) will be administered by the Ministry of Finance. The SPV would fund roads, railways, ports, power, urban
infrastructure projects. The funding policy also stipulates that private players will be a given a period
of more than 10 years to repay the debt. While at least 25% of the funds will come from a participating lead bank for a single project, the rest will come in the form of soft loan from IIFCL.
vehicle (SPV) created for the purpose. The SPV shall finance only commercially viable projects. Total lending for private projects will, not exceed 20% of the lending programmes of SPV in any accounting years. The SPV, known as Indian Infrastructure Company Ltd. (IIFCL) will be administered by the Ministry of Finance. The SPV would fund roads, railways, ports, power, urban
infrastructure projects. The funding policy also stipulates that private players will be a given a period
of more than 10 years to repay the debt. While at least 25% of the funds will come from a participating lead bank for a single project, the rest will come in the form of soft loan from IIFCL.
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