India launches Infrastructure debt fund
Date
March 06, 2012
Subscribe to our newsletter and get the latest news and business opportunities in your inbox
The government of India has launched an Infrastructure debt fund (IDF) with the help of ICICI Bank (31 %), and Citibank (29 %). Government-run Bank of Baroda will hold 30 percent and the Life Insurance Corporation of India 10 percent stake in the fund.
How will this fund be used?
This fund will have a function of assuring the existence of long-tem debt in infrastructure projects for funding the government's ambitious programme of infrastructure development. This fund can be used for providing directly long-term debt to PPP projects. But it also can be used to buy long-term debt from banks so that they have renovated capacity to lend money to developers for new projects.
This fund will look for capity from potential investors. To attract these off-shore funds, the Finance Minister had also announced that withholding tax on interest payments on the borrowings by the IDFs would be reduced from 20% to 5%. Income of the IDFs has also been exempt from income tax.
We will keep our eyes well open to follow potential investors that inject money into the fund.
Download the press release.Remember we are here to provide you with the best resources in the industry:Join InfraPPP Blogs on your favourite social network:
- Follow us on twitter: +800 followers
- Join our Linkedin group: +2,000 members
