People the latest update of the news is that, IDFs will essentially act as vehicles for refinancing existing debt of infrastructure companies, thereby creating fresh headroom for banks to lend to new infrastructure projects.
Guys to get into the details of the norms of the laon... the directive is expected to spell out that an infrastructure loan taken over by an IDF would be treated as standard asset and not as a rescheduled loan. IDFs were launched in 2011 to facilitate the flow of longterm funds to the infrastructure sector, but have seen little traction in the last two years.
See Mr Kher as per the rules and regulations, under the current rules any rescheduled loan is treated as a non-performing loan for which banks have to make provisions. Hence the new norms will totally change the structure of the loans.
True and hope this will help us in many ways.. like i am expecting to have a big boost to refinancing by newly established infrastructure debt funds (IDFs). !!
Yes this came in news and it says that Reserve Bank of India will soon relax norms for the takeover of infrastructure loans, allowing them to be treated as standard assets even if they are rescheduled during the process. So nothing is yet confirmed !