Press Information Bureau

Government of India

Ministry of Finance

16-March-2012 14:06 IST

Harmonized Master List of Infrastructure Approved

Infrastructure Debt Fund of Rs. 8000 Crore Launched

Defence Psus Can Form JVs FOR PPPs

Presenting the General Budget 2012-13 in LokSabhahere today,ShriPranab Mukherjee, Finance Minister stated that a harmonized master list of infrastructure has been approved by the Government. This will help in removing ambiguity in the policy and regulatory domain and encourage investment in the infrastructure sector, he stated.

The Finance Minister, Shri Mukherjee informed that an Infrastructure Debt Fund with an initial size of Rs. 8000 crore has been launched earlier this month to tap the overseas markets for long term pension and insurance funds, for financing infrastructure projects. In order to provide ease of access of credit to infrastructure projects, India Infrastructure Finance Company Limited (IIFCL) has set-up a structure for credit enhancement and take-out finance. Towards the same aim, a consortium for direct lending and grant of in-principle approval to infrastructure developers before bid submission for PPP projects has also been created.

The Finance Minister stated that the Government has approved guidelines under which defence Public Sector Undertakings adopting the PPP mode, can establish joint venture companies. This, he mentioned, will serve the two-fold objective of achieving substantive self-reliance in the defence sector while leading to production of state-of-the-art defence goods.

DSM/MV/LMP/19

Harmonized master list of infrastructure clarifies policy and enables debt finance, credit enhancement and PPP joint ventures for defence PSUs. A harmonized master list of infrastructure has been approved to reduce policy ambiguity and promote investment. The Government launched an Infrastructure Debt Fund to attract long-term overseas pension and insurance finance, and IIFCL has instituted credit enhancement and take-out finance structures; a consortium for direct lending and in-principle approval to developers before PPP bid submission has been created. Separate guidelines permit defence Public Sector Undertakings to form joint venture companies under PPP arrangements to foster self-reliance and production of advanced defence goods.