SEZs GET INFRASTRUCTURE LENDING STATUS

The Reserve Bank of India (RBI) has classified loans to Special Economic Zones as infrastructure lending. The policy instructions came about a month after the finance ministry had allowed SEZ developers to access overseas loans through the external commercial borrowing route. RBI has also said exposure of banks towards acquisition of SEZ units or purchase and working capital requirements, loans to developers, who have entered in to lease contracts with units for a period
equal to the repayment time of the credit availed and loans to captive SEZs, like the ones being developed by Infosys and TCS will be treated as infrastructure lending.