(a) whether the Asian Development Bank (ADB) has sought Government permission to raise funds through issue of bonds in India;
(b) if so, the details thereof and the reasons therefor;
(c) whether the Government has discussed the modalities for utilization of those funds; and
(d) if so, the details thereof and the time by which these bonds are likely to be issued?
MINISTER OF THE STATE IN THE MINISTRY OF FINANCE (SHRI PAWAN KUMAR BANSAL)
(a) and (b) Yes, Sir. Asian Development Bank has sought approval for local
currency funding for private sector infrastructure projects.
(c) and (d) The funds within the limit of Rs. 29.75 billion would be raised
flexibly by ADB either through Rupee bond issue in India or through the swap route.
These funds would be raised for infrastructure projects only. If ADB proposes to
use the swap route to bring in foreign currency funds, these should be brought in
and swapped into rupee only when ADB has lending facilities lined up and in case
funds are raised through domestic rupee bond issue, then they must have a maturity
in excess of ten years. Further, upto 25% (on a proportional basis) of the funds
raised (by Rupee bonds issue or through swap) may be used for lending to
Intermediary financial institutions viz. Infrastructure Development Finance Company
(IDFC), India Infrastructure Finance Company Limited (IIFCL), Power Finance
Corporation (PFC), Rural Electrification Corporation (REC) and Indian Railway
Finance Corporation (IRFC) only. No time frame has been stipulated for the issue
of rupee bonds by A