Q1. What is an Infrastructure
finance?
Ans
“Infrastructure loan” means a credit facility extended
by NBFCs to a borrower for exposure in the following
infrastructure
sub-sectors:
Sl.No.
|
Category
|
Infrastructure sub-sectors
|
1.
|
Transport | i.
Roads and bridges ii. Ports iii. Inland Waterways iv. Airport v. Railway Track, tunnels, viaducts, bridges vi. Urban Public Transport (except rolling stock in case of urban road transport) |
2.
|
Energy | i.
Electricity Generation ii. Electricity Transmission iii. Electricity Distribution iv. Oil pipelines v. Oil/Gas/Liquefied Natural Gas (LNG) storage facility vi. Gas pipelines |
3.
|
Water & Sanitation | i.
Solid Waste Management ii. Water supply pipelines iii. Water treatment plants iv. Sewage collection, treatment and disposal system v. Irrigation (dams, channels, embankments etc) vi. Storm Water Drainage System |
4.
|
Communication | i.
Telecommunication (Fixed network) ii. Telecommunication towers |
5.
|
Social and Commercial Infrastructure | i.
Education Institutions (capital stock) ii. Hospitals (capital stock) iii. Three-star or higher category classified hotels located outside cities with population of more than 1 million iv. Common infrastructure for industrial parks, SEZ, tourism facilities and agriculture markets v. Fertilizer (Capital investment) vi. Post harvest storage infrastructure for agriculture and horticultural produce including cold storage vii. Terminal markets viii. Soil-testing laboratories ix. Cold Chain |
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Phone #
09811415831-37-92-94
Email: ask@nbfc.in
Q2. What is an IFC and what are the eligibility or
entry point norms for registration of an IFC-NBFC with
RBI?
Ans : IFC is a non-deposit accepting
loan company which complies with the following :
-
A
minimum of 75 per cent of the total assets of an IFC-NBFC
should be deployed in infrastructure loans;
-
The
company should have minimum net-worth of Rs 300
crore,
-
The
CRAR of of the company should be at 15% with Tier I capital
at 10% and
-
The
minimum credit rating of the company should be at
'A' or equivalent of CRISIL, FITCH, CARE, ICRA, BRICKWORK or
equivalent
rating by any other accrediting rating
agencies.
Their
request must be supported by a certificate from
their Statutory Auditors confirming the asset pattern of the
company as
on March 31, of the latest financial
year
Q3. What are the credit concentration norms for
IFCs?
Ans : IFCs may exceed the concentration
of credit norms as provided in paragraph 18 of the aforesaid
Directions as under:
i. In
lending to
a. any single borrower by ten per cent of its owned fund, (i.e at 25% of Owned Funds) and
b. any single group of borrowers by fifteen per cent of its owned fund, (i.e. at 40% of Owned Funds)
ii. In
lending and investing (loans/investments taken together)
by
a. five percent of its owned fund to a single party, (i.e.at 30% of Owned Funds); and
b. ten percent of its owned fund to a single group of parties, (i.e. at 50% of Owned funds).
iii.
The extant norms for investment for both single party
and single group of parties will remain same as in Para 18
of the
Directions, i.e.
a. Investment in shares of another company cannot exceed 15% of its Owned Funds
b. Investment in shares of a single group of companies cannot exceed 25% of its Owned Funds.
Q.4 What is the risk weight IFCs have to
maintain on assets covering PPP and which have completed one
year of
commercial production?
Ans: Infrastructure Finance
Companies can maintain risk weight at 50% for assets
covering PPP and
post commercial operations date (COD) projects which have
completed at
least one year of satisfactory commercial operations and
which are
backed by a buyback guarantee by a designated Project /
Statutory
authority under a Tripartite Agreement.
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Phone #
09811415831-37-92-94
