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’:

 

S.No:

Category

Infrastructure sub-sectors

1.

Transport
  1. Roads and bridges
  2. Ports
  3. Inland Waterways
  4. Airport
  5. Railway Track, tunnels, viaducts, bridges
  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. Oilpipelines
  5. Oil/Gas/Liquefied Natural Gas (LNG) storage facility
  6. Gas pipelines

3.

Water & Sanitation
  1. Solid Waste Management
  2. Water supplypipelines
  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)
  2. Telecommunication towers

5.

Social and Commercial Infrastructure
  1. Education Institutions (capital stock)
  2. Hospitals (capital stock)
  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 includingcold storage
  7. Terminal markets
  8. Soil-testing laboratories
  9. Cold Chainc

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