To fast-track, infrastructure projects will be rated on land, funding

With infrastructure development high on the Government’s priority list, the Finance Ministry has initiated a process to rate infrastructure projects on various parameters before being offered to developers for execution.

With infrastructure development high on the Government’s priority list, the Finance Ministry has initiated a process to rate infrastructure projects on various parameters before being offered to developers for execution.

Official sources said that the parameters on which a particular project would be rated include, progress on land acquisition, the strength of concession agreement, the amount of government support needed in terms of gap funding etc. These various parameters would then be given the required weightage by rating agencies and would get reflected as a rating for the project.

Sources said that such an exercise would not only reflect the attractiveness of a project but would also help successful bidders to tap the market to raise money for projects. Added to this, such an exercise would indirectly rate states where the projects are being executed.

Story continues below this ad

Sources said such an exercise also tries to address one of the problems pointed out in the much-awaited Deepak Parekh committee report on infrastructure financing submitted to Finance Minister P Chidambaram last week (the rating exercise was started ahead of the appointment of the Parekh committee in January). Chidambaram is expected to utilize this report to outline a strategy for infrastructure financing in his Budget later this month.

The interim report of the Parekh committee points to problems faced by companies in getting banks to back bonds (project specific) which in turn are used to finance their venture. Sources said by getting stakeholders to agree to a rating format for infrastructure projects, companies could then approach banks to put money in their ventures (either directly or indirectly through bonds). In fact, sources said that the report is not in favour of using the country’s forex reserves for funding projects in India but rather they would be better utilized by providing for projects that go towards furthering India’s benefits.

A court in Antwerp passed the order initiating the formal process of bringing Choksi back to India. But, he still has options to challenge the order passed by the lower court.

Belgian court clears fugitive jeweller Mehul Choksi’s extradition to India

India18 min ago

Mehul Choksi, a fugitive diamantaire wanted in India for a Rs 13,000 crore loan fraud case, has been cleared for extradition by a court in Antwerp, Belgium. The Indian government has assured that Choksi will be held in a specific jail complex and provided with basic amenities if extradited. Choksi's extradition proceedings have advanced in Belgium and he has the option to challenge the order.

View all shorts

Live Blog

PHOTOS