Infrastructure Finance Companies

Infrastructure finance companies are a non-deposit accepting, loan company that have a minimum of 75% of the total assets of the company deployed as infrastructure loans. Further, Infrastructure Finance Companies are also required to have a minimum net-worth of Rs.300 crores, CRAR at 15% with Tier I capital at 10% and a minimum credit rating of A from CRISIL, FITCH, CARE, ICRA, BRICKWORK or equivalent rating by any other accrediting rating agencies.

What is Infrastructure Loan?

Credit facility extended to the following categories are classified as infrastructure loan. The term ‘credit facility’ means a

term loan, project loan subscription to bonds/ debentures/ preference shares/ equity shares in a project company acquired as a part of project finance package such that such subscription amounts to be “in the nature of advance” or any other form of long term funded facility provided to a borrower company engaged in developing/ operating and maintaining/ developing, operating and maintaining infrastructure facilities, that is a project in any of the sub-sectors as specified in the definition of infrastructure loan.

Transport
- Roads and bridges
- Ports
- Inland Waterways
- Airport
- Railway Track, tunnels, viaducts, bridges
- Urban Public Transport (except rolling stock in case of urban road transport)
Energy
- Electricity Generation
- Electricity Transmission
- Electricity Distribution
- Oil pipelines
- Oil/Gas/Liquefied Natural Gas (LNG) storage facility
- Gas pipelines
Water & Sanitation
- Solid Waste Management
- Water supply pipelines
- Water treatment plants
- Sewage collection, treatment and disposal system
- Irrigation (dams, channels, embankments etc)
- Storm Water Drainage System
Communication
- Telecommunication (Fixed network)
- Telecommunication towers
Social and Commercial Infrastructure
- Education Institutions (capital stock)
- Hospitals (capital stock)
- Three-star or higher category classified hotels located outside cities with population of more than 1 million
- Common infrastructure for industrial parks, SEZ, tourism facilities and agriculture markets
- Fertilizer (Capital investment)
- Post harvest storage infrastructure for agriculture and horticultural produce including cold storage
- Terminal markets
- Soil-testing laboratories
- Cold Chains

Back to Learn

Frequently Asked Questions

Common questions about Infrastructure Finance Companies in India: Loans & Services.

An infrastructure finance company is a non-deposit accepting, loan company that has a minimum of 75% of its total assets deployed as infrastructure loans. It is required to have a minimum net-worth of Rs.300 crores, a CRAR of 15% with Tier I capital at 10%, and a minimum credit rating of A from accredited rating agencies.

An infrastructure loan is a credit facility, such as a term loan, project loan, subscription to bonds/debentures/preference shares/equity shares in a project company, or any other form of long-term funded facility, provided to a borrower company engaged in developing, operating, and maintaining infrastructure facilities in sectors like transport, energy, water and sanitation, communication, and social and commercial infrastructure.

The transport sub-sectors eligible for infrastructure loans include roads and bridges, ports, inland waterways, airports, railway tracks, tunnels, viaducts, bridges, and urban public transport (except rolling stock in case of urban road transport).

The energy sub-sectors eligible for infrastructure loans include electricity generation, electricity transmission, electricity distribution, oil pipelines, oil/gas/liquefied natural gas (LNG) storage facilities, and gas pipelines.

The water and sanitation sub-sectors eligible for infrastructure loans include solid waste management, water supply pipelines, water treatment plants, sewage collection, treatment and disposal systems, irrigation (dams, channels, embankments, etc.), and storm water drainage systems.

The communication sub-sectors eligible for infrastructure loans include telecommunication (fixed network) and telecommunication towers.

The social and commercial infrastructure sub-sectors eligible for infrastructure loans include education institutions (capital stock), hospitals (capital stock), three-star or higher category classified hotels located outside cities with a population of more than 1 million, common infrastructure for industrial parks, SEZs, tourism facilities, and agriculture markets, fertilizer (capital investment), post-harvest storage infrastructure for agriculture and horticultural produce including cold storage, terminal markets, and soil-testing laboratories.

An infrastructure finance company is required to have a minimum net-worth of Rs.300 crores.

An infrastructure finance company is required to have a CRAR (Capital to Risk-Weighted Assets Ratio) of 15% with Tier I capital at 10%.

An infrastructure finance company is required to have a minimum credit rating of A from CRISIL, FITCH, CARE, ICRA, BRICKWORK, or equivalent rating by any other accredited rating agency.