RBI extends infrastructure sector lending sub-category to include hotels and convention centres

As per a notification released by the Reserve Bank of India, the definition of infrastructure lending has been extended to include hotels with project costing more than Rs. 200 crore anywhere in India and of any star rating as well as convention centres with project worth Rs. 300 crore or more.

What would be the effect of bringing hotels and convention centre into infrastructure lending?

From now on, the new sub-sectors hotels and convention centres would come under ‘Social and Commercial Infrastructure’ category classified under ‘infrastructure’ for the purpose of lending by banks and select All India Term-Lending and Refinancing Institutions.

What are various sectors and sub-sectors under Infrastructure Lending?

List of sub-sectors for ‘Infrastructure Lending’
A credit facility extended by lenders (i.e. banks and select AIFIs) to a borrower for exposure in the following infrastructure sub-sectors will qualify as ‘infrastructure lending’:
 

Month: Current Affairs - November, 2013