Hdfc Cuts Rates By 25 Basis Points

Srei International Finance, engaged in infrastructure financing, leasing and hire purchase, has earmarked around Rs 200 crore for project funding for the next two years.

This includes mainly power and the roads sector, while a portion of the fund will flow into telecommunication projects and ports. Srei has recently finalised financing the Rs 39.75 crore worth two lane bridge over river Wainganga at Bandara, Nagpur. The project has been built by Neco group of Nagpur and the Ashoka group of Nasik.

P K Pandey, head, infrastructure project finance, Srei, said, "Last year total outflow of funds was Rs 225 crore, of which over 95 per cent went to infrastructure. Corporate funding was not relevant." Of Srei's total infrastructure financing, roads accounted for 70 per cent, while power accounted for 30 per cent, he added. As for the project at Wainganga, the total cost of Rs 32.75 crore is financed by debt of Rs 26.50 crore and equity contribution of Rs 13.25 crore.

While the equity has been provided by Neco and Ashoka Group together, 100 per cent of the project debt is being provided by Srei and IDFC. Srei is financing Rs 6.5 crore and the balance is being financed by IDFC. The bridge will connect the National Highway-6 over river Wainganga.

Srei's construction equipment bank will be operational shortly. Under the scheme, construction equipments will be lent at rates depending on the duration and size of the project, and application of the equipment.

Srei is one of the 10 listed Asian companies which specialises in leasing of equipment in infrastructure sector, particularly energy, roads, transport and telecommunications. Its focus is on financing small and medium size projects varying between $10-100 million which can be implemented much faster and where the gestation period is shorter.

This policy has helped the company maintain good quality of asset portfolio in the infrastructure sector.