RBI revises definition of infra lending
MUMBAI, November 21, 2012
SPECIAL CORRESPONDENT
Reserve Bank of India
TOPICS
The Reserve Bank of India (RBI) on Tuesday revised the
definition of ‘infrastructure lending’, which would make sectors and
sub-sectors eligible for infrastructure lending by banks and financial
institutions with immediate effect.
The exposure of banks to projects under sub-sectors which
were included under the RBI’s previous definition of infrastructure — as per
the circular of November 30, 2007, but not included under the revised definition,
will continue to get the benefits under ‘infrastructure lending’ till the
completion of the projects.
However, “any fresh lending to those sub-sectors from the
date of this circular will not qualify as ‘infrastructure lending’, the RBI
said in a notification to all banks and financial institutions.
The Government of India had notified a master list of
infrastructure sectors/sub-sectors in March 2012 to avoid multiplicity of
definitions among various regulators which gives rise to confusion and difficulties.
The sectors and sub-sectors come under revised infrastructure lending are:
Transport: Roads and bridges, ports inland waterways,
airport, railway track, tunnels, viaducts, bridges, including supporting
terminal infrastructure such as loading/unloading terminals, stations and
buildings, urban public transport (except rolling stock in case of urban road
transport).
Energy: Electricity generation, electricity transmission,
electricity distribution, oil pipelines and oil/gas/liquefied natural gas (LNG)
storage facility (including strategic storage of crude oil) and gas pipelines,
including city gas distribution network.
Water and sanitation: Solid waste management, water supply
pipe lines, water treatment plants, sewage collection, treatment and disposal
system and irrigation (dams, channels, embankments and the like) and storm
water drainage system.
Communication: Telecommunication (fixed network) including
optic fibre/cable networks which provide broadband / internet and
telecommunication towers.
Social and commercial infrastructure: Educational
institutions (capital stock), hospitals (capital stock), including medical
colleges, para medical training institutes and diagnostics centres and
three-star or higher category classified hotels located outside cities with
population of more than one million.
http://www.thehindu.com/business/Industry/rbi-revises-definition-of-infra-lending/article4116229.ece
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