Q. Consider the following statements in context with the Infrastructure Finance Companies: 

1. The Infrastructure Finance Companies are able to finance the infrastructure projects more than 75% of their total assets so thus can do more business.
2. The Infrastructure Finance Companies become eligible for issuance of ‘infrastructure bonds’ and for raising funds up to 500 million dollars through external commercial borrowing (ECB) in a year.

Which among the above statements is/ are correct?
Answer: Both 1 & 2
Notes: Both statements are correct regarding Infrastructure Finance Companies (IFCs). 1. IFCs can finance infrastructure projects up to 75% of their total assets, allowing them to engage importantly in infrastructure development. This is in line with the guidelines set by the Reserve Bank of India (RBI). 2. IFCs are eligible to issue infrastructure bonds and can raise up to $500 million through external commercial borrowing (ECB) annually, facilitating access to international capital markets for funding large projects. These features enable IFCs to play a crucial role in financing infrastructure development, which is vital for economic growth.