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