Infrastructure Finance

Insurance coverage for infrastructure projects is limited. The infrastructure insurance segment accounts for only 7 per cent of the total general insurance pie, a paltry proportion compared to the value and size of projects involved. […]

To meet the financing requirement of the infrastructure sector, the development of alternative funding sources has assumed greater importance in recent months. This is because banks, the traditional source of funds, have limited latitude for […]

Equity financing typically meets about a fourth of the cost of an infrastructure project. It primarily comes through project promoters or private equity (PE) investors. Though equity does not form a very large part of […]

The initial public offering (IPO) market for the economy as a whole has showed signs of revival since 2015-16. The current fiscal year (till November 2016) recorded the highest issuances since 2010-11. However, a similar […]

The new capital adequacy requirements set under Basel III and the deterioration in asset quality of banks (mostly in infrastructure) has required the government to encourage credit institutions to play a bigger role that can […]

In a scenario where the government has accorded first and foremost priority to infrastructure development, along with the present inadequacy of funds for infrastructure projects, the role of banks and public financial institutions needs to […]

Banks, the predominant providers of infrastructure finance, are reeling under unprecedented stress levels leading to reduced credit availability to the sector. Currently, the banking sector’s exposure to infrastructure stands at 15 per cent of gross […]

Infrastructure financing has been a vexed issue in India. Traditionally, banks have been the biggest source of funds for infrastructure projects. However, lately, factors such as the exhaustion of sectoral limits, the adoption of Basel […]

Financing infrastructure projects has always been difficult in India. In the past few years, the already difficult situation has been exacerbated, as banks, the largest financiers of the sector, have been affected by high levels […]