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RESERVE BANK OF INDIA (RBI)

  1. Definition of 'Infrastructure Loan' of NBFCs – Harmonisation

    The Reserve Bank of India (hereinafter referred to as “RBI”) has vide Circular No. DNBS.PD.CC.No. 317/03.10.001/2012-13 dated 28th December, 2012 amended the definition of Infrastructure Loan for the for the purpose of NBFC Prudential Norms Directions, 2007, to read as follows:

    Infrastructure loan means a credit facility extended by NBFCs to a borrower for exposure in the following infrastructure sectors:
    Sr. No Category Infrastructure sub-sectors
    1 Transport
    1. Roads and bridges
    2. Ports
    3. Inland Waterways
    4. Airport
    5. Railway Track, tunnels, viaducts, bridges 1
    6. Urban Public Transport (except rolling stock in case of urban road transport)
    2 Energy
    1. Electricity Generation
    2. Electricity Transmission
    3. Electricity Distribution
    4. Oil pipelines
    5. Oil/Gas/Liquefied Natural Gas (LNG) storage facility 2
    6. Gas pipelines 3
    3 Water & Sanitation
    1. Solid Waste Management
    2. Water supply pipelines
    3. Water treatment plants
    4. Sewage collection, treatment and disposal system
    5. Irrigation (dams, channels, embankments etc)
    6. Storm Water Drainage System
    4 Communication
    1. Telecommunication (Fixed network) 4
    2. Telecommunication towers
    5 Social and Commercial Infrastructure
    1. Education Institutions (capital stock)
    2. Hospitals (capital stock) 5
    3. Three-star or higher category classified hotels located outside cities with population of more than 1 million
    4. Common infrastructure for industrial parks, SEZ, tourism facilities and agriculture markets
    5. Fertilizer (Capital investment)
    6. Post harvest storage infrastructure for agriculture and horticultural produce including cold storage
    7. Terminal markets
    8. Soil-testing laboratories
    9. Cold Chain 6

    Note: The exposure of NBFCs to projects under sub-sectors which were included under our previous definition of infrastructure, but not included under the revised definition, will continue to get the benefits under ‘infrastructure lending’ for such exposures till the completion of the projects. However, any fresh lending to those sub-sectors from the date of this circular will not qualify as ‘infrastructure lending’.

  2. External Commercial Borrowings (ECB) for the low cost affordable housing projects

    The Reserve Bank of India (hereinafter referred to as “RBI”) has vide Circular No. A.P. (DIR Series) Circular No.61 dated 17th December, 2012 decided to allow External Commercial Borrowings for low cost affordable housing projects by developers/ builders as a permissible end-use under the approval route and has issued guidelines on External Commercial Borrowings for low cost affordable housing scheme.

    As per the above referred guidelines, a low cost affordable housing project for the purpose of External Commercial Borrowings means a project in which at least 60 percent of the permissible FSI is for units having maximum carpet area up to 60 square meters.

  3. Trade Credits for Import into India

    The Reserve Bank of India (hereinafter referred to as “RBI”) has as per the extant guidelines on Trade Credit allowed Infrastructure Companies to avail trade credit for import of capital goods as classified by DGFT, upto a maximum period of five years subject to certain conditions . RBI has now vide Circular No. A.P. (DIR Series) Circular No. 59 dated 14th December, 2012 decided to relax the conditions of ‘abinitio buyers credit from 15 months to 6 months for existing Trade Credits

    However, for future trade credit it shall be 15 months.
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