Comments
Infrastructure Debt Funds (IDFs) will now have access to the SARFAESI law provisions for recovery of their dues, if any.
They could make use of the adjudicatory process available through debt recovery tribunals.
A decision to this effect was taken by the Cabinet Committee on Economic Affairs (CCEA) at its meeting today.
This is likely to encourage more IDFs to be set up in the country.
This will bring IDFs on par with banks and public financial institutions as regards the mechanisms available for recovery of dues.
The CCEA has also specified that post successful commercial operation date PPP projects will now be eligible for investment by insurance companies, provident funds and mutual funds.
Also, the annual guarantee fee payable to the concession authority has been capped at 0.05 percent per annum of outstanding debt financed by IDFC-NBFC for the first three years of its operations.
“This is an excellent decision. It provides clarity and will help in deciding the actual cost at which IDF-NBFCs can lend,” Harsh Kumar Bhanwala, acting Chairman of Indian Infrastructure Finance Company Ltd (IIFCL), told Business Line .
srivats.kr@thehindu.co.in
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.