India changes lending rules to drive highway spending

04/21/2010 | Business Standard (India) · Wall Street Journal, The

The Reserve Bank of India is loosening lending rules on road and highway projects -- several of which are shown in photographs in the Journal -- in a bid to spur investment in the nation's creaky infrastructure. The RBI said annuities under the build-operate-transfer model can be considered tangible securities to offer secured loans. That decision "will bring down the interest rate burden in BOT projects, especially for roads and highways," said Praveen Sood, chief financial officer of HCC Ltd, a Mumbai-based construction company.

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Business Standard (India) · Wall Street Journal, The

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