Infra financing: Barking up the wrong tree5 min read . Updated: 21 Jul 2014, 01:03 AM IST
The new norms to boost Infrastructure financing may not yield the desired results as the problem lies elsewhere
Banks in India are now allowed to structure infrastructure loans for up to 25 years by refinancing every five years on fresh terms. This can be done by the existing banks or even by a new set of banks. Since such restructuring will not be treated as traditional loan recast, the banks will not have to set aside money when they refinance infrastructure loans under the so-called 5:25 model.
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