Needed, a fresh perspective on infrastructure funding : Chidambaram
Finance Minister, Mr. P. Chidambaram called for a fresh perspective of infrastructure funding at the launching of the IL&FS Infrastructure Debt Fund in Mumbai on Saturday, February 09, 2013
The Finance Minister Mr. P Chidambaram today launched the IL&FS Infrastructure Debt Fund promoted by IL&FS and LIC of India, to finance long term infrastructure projects in the country. Addressing a gathering of top bankers and fund managers in Mumbai this evening, Mr P Chidambaram said the anticipated investment on infrastructure projects in the country is 1 trillion dollars; half of which will have to come from the private sector. He said, India urgently needs to build world class roads, railways and port network to put the economy on high growth path. “Large funds, in the form of pension funds and wealth funds from abroad are interested in investing in India. We need to respond with better project execution with no time and cost over runs” he added.
Finance Minister, Mr. P. Chidambaram launching the IL&FS Infrastructure Debt Fund in Mumbai on Saturday, February 09, 2013.
Advocating a fresh perspective on funding long-term infrastructure projects, Mr. Chidambaram said, the debt funds, like IL&FS Debt Fund would step in after the project has crossed the regulatory stage and taken off. It will take over the loans and advances given by banks and lend at a lower cost on most occasions for the rest of the projects life. Mr Chidambaram appealed to the bankers to change their mind set on lending to long-term projects and said “here I call upon the Bankers to recognize the complimentality of loans, realize their money – with some capital gain perhaps, and let the debt funds finance the projects”.
Finance Minister said the Infrastructure Debt Funds add more depth to the market, help raise more money and also bring down the cost of financing in the long run. IL&FS Infrastructure Debt Fund proposes to raise Rs 5,000 crores and would invest primarily in in projects in the field of power, port, roads and also healthcare and education sector.