INSUBCONTINENT EXCLUSIVE:
He further noted that the underdeveloped financial system and the limited market for infrastructure debt have made the sector heavily
dependent on banks | File image2 min read Last Updated Sep 12 2024 | 12:15 PM IST
The National Bank for Financing Infrastructure and
Development (NaBFID) should aim to become a self-sustaining business that does not depend on "continuous government support", said M
Rajeshwar Rao, deputy governor of the Reserve Bank of India, on Thursday.
NaBFID is a development finance institution that was set up in
2021 to focus on infrastructure funding
on banks and non-banking financial companies for financing
When the non-performing assets of banks increased over the past decade and a major NBFC defaulted on loans, "appetite of such financial
financing and lead to asset-liability mismatches
Delays in approvals, clearances, land acquisition challenges and breaches of agreements exacerbate the risks and often result in cost
overruns.
He said that the interdependence of infrastructure projects adds another layer of complexity
The success of one project often hinges on the availability of complementary infrastructure
This interconnectedness means that delays or issues in one project can affect others, making the financing process more intricate
Effective infrastructure development requires a holistic approach where projects are viewed as part of an interconnected network rather than
Successful outcomes depend on synchronized financial planning, meticulous execution, and leveraging synergies across projects.First
Published: Sep 12 2024 | 11:30 AMIST
