(a) whether RBI has decided to provide new methods for funding infrastructure;
(b) if so, whether any concrete proposal in this regard have been worked out by the RBI;
(c) if so, the details thereof; and
(d) the time by which it is likely to be introduced ?
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI BALASAHEB VIKHE PATH) :
(a) to (d) Reserve Bank of India (RBI) has reported that the Bank has not formulated
any new method for financing infrastructure projects. However, the RBI has issued operational
guidelines in April, 1999 addressing important aspects involved in the financing of
infrastructure projects and advising banks and financial institutions to sanction term
loans for technically feasible, financially viable and bankable projects subject to
prescribed criteria. To accelerate flow of institutional credit to infrastructure projects,
the RBI has dispensed with the stipulation regarding ceiling on the quantum of term loan
which can be granted by banks for a single project (Rs. 1000 crore for power projects and
Rs. 500 crore for other projects). The banks are permitted to exceed the group exposure
norms of 50%, to the extent of 10%, provided the additional exposure is for the purpose
of financing infrastructure projects.