RBI widened definition of Infrastructure lending Sub Category

Reserve Bank of India on 25 November 2013 widened the definition of infrastructure lending sub category in a bid to expedite Projects.

In a notification issued by RBI, it has stated that new sub-sectors that have been added in the list will include hotels with project cost of more than 200 crore rupees bring built anywhere in India and of any star rating.  The list will also include convention centres with project cost of more than 300 crore rupees.
 
RBI also stated that the new sub-sectors will get classified as 'infrastructure' for the purpose of lending by banks and select All India Term-Lending and Refinancing Institutions.

Various sub-sectors under the categories such as Transport, Energy,Water & Sanitation, Communication, Social and Commercial Infrastructure come under infrastructure lending. Hotel and convention centre come under 'Social and Commercial Infrastructure' category for this kind of lending.

If you have any Question/Point on the above information, please ask/discuss it in the Current Affairs Group