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IDFs fail to grow despite regulatory reform: ICRA

IDFs are investment vehicles for channelising investment to the sector

Subrata Panda  |  Mumbai 

ICRA
ICRA

The refinancing of the through dedicated companies — infrastructure funds (IDFs) — has failed to grow in a big way in the last two years, despite regulatory reforms. Limited number of operational projects with one-year track record and reluctance of to provide low-risk infra are holding back growth of IDFs, according to rating agency  

are investment vehicles for channelising investment to the sector, sponsored by the commercial and non-banking financial companies (NBFCs) in India for facilitating the flow of long-term to the sector. 

An IDF can be set up either as a trust  (infrastructure fund – mutual funds) or as a   Currently, there are three IDF-NBFC’s operating in India — India Infra Limited, Infrastructure Limited and Fund. Rohit Inamdar, group head, ICRA, said there has been changes in the regulatory landscape yet the limited number of operational projects with track record of satisfactory performance for at least one year in the sector has impacted the lending activity of

First Published: Wed, September 06 2017. 02:16 IST
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