Hotels and convention centres have been included in the definition of infrastructure funding by the Government, according to the Reserve Bank of India.
“The new sub-sectors (hotels and convention centres) will get classified as ‘infrastructure’ for the purpose of lending by banks and select all-India term-lending and refinancing institutions
“…and will be subject to the conditions mentioned therein,” the RBI said in a notification.
According to the banking regulator, hotels of any star rating with project cost of more than Rs 200 crore each in any place in India, and Convention Centres with project cost of more than Rs 300 crore each have been added in the Harmonised Master List of Infrastructure sub-sectors by the Government.
Earlier, three-star or higher category hotels located outside cities with population of more than one million was the only classification under infrastructure lending.
Hotels and convention centres will be categorised as sub-sectors under Social and Commercial Infrastructure category.
Other sub-sectors include education institutions, hospitals, common infrastructure for industrial parks, SEZs, tourism facilities and agriculture markets and fertiliser.