In a move that will potentially improve India’s infrastructure funding options, the cabinet on Wednesday allowed state government entities to directly tap bilateral agencies for resources.

Not only will this give greater flexibility to state entities to fund infrastructure projects, it will also enable state governments to move some debt off their books.

The new fundraising route will allow for direct borrowing by state public sector undertakings (SPSUs) from Official Development Assistance (ODA) partners in countries like Japan, the US and Germany.

While such a dispensation is available to central public sector units, it wasn’t available for SPSUs, thereby exhausting state governments’ borrowing limits. Read More…

 

Credit By : Livemint

 

  infrastructure projects, ODA, SPSUs