Financing of Infrastructure by the banks and Financial Institutions –
Definition of 'infrastructure lending'
Reserve Bank of India has decided to expand, with effect from 30th November 2007, the scope of the definition of 'infrastructure lending', to include the credit facilities sanctioned by the banks and the select (AIFIs) for projects involving laying down and/or maintenance of gas/crude oil/petroleum pipelines, in view of the importance of pipelines in the industrial development of the country.
Infrastructure lending and the list of items included under infrastructure sector
Any credit facility in whatever form extended by lenders (i.e. banks, FIs or NBFCs) to an infrastructure facility as specified below falls within the definition of 'infrastructure lending'. In other words, a credit facility provided to a borrower company engaged in:
* developing or
* operating and maintaining, or
* developing, operating and maintaining any infrastructure facility that is a project among others specified in the annexure would also inclde
i. a road, including toll road, a bridge or a rail system;
ii. a highway project including other activities being an integral part of the highway project;
iii. a port, airport, inland waterway or inland port;
iv. a water supply project, irrigation project, water treatment system, sanitation and sewerage system or solid waste management system;
v. telecommunication services whether basic or cellular, including radio paging, domestic satellite service (i.e., a satellite owned and operated by an Indian company for providing telecommunication service), network of trunking, broadband network and internet services;
vi. an industrial park or special economic zone;
vii. generation or generation and distribution of power
viii. transmission or distribution of power by laying a network of new transmission or distribution lines.
ix. construction relating to projects involving agro-processing and supply of inputs to agriculture;
x. construction for preservation and storage of processed agro-products, perishable goods such as fruits, vegetables and flowers including testing facilities for quality;
xi construction of educational institutions and hospitals.
xii. laying down and/or maintenance of gas, crude oil and petroleum pipelines
xiii. any other infrastructure facility of similar nature.
Revised Categories of Priority Sector for Commercial Banks- January 2007 ...click here
For More RBI Policy Guidelines ...click here
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