IDFs fail to grow despite regulatory reform: ICRA

The refinancing of the infrastructure projects through dedicated finance companies — infrastructure debt 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 banks to provide low-risk infra loans are holding back growth of IDFs, according to rating agency ICRA. 

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

An IDF can be set up either