Shift away from bank-dominated financial system: Economic Survey
Though banks are main source of funding these projects, they have limitations because of asset-liability mismatch.
"Infrastructure development funds (IDF) through innovative means of credit enhancement are expected to provide long-term low-cost debt for infrastructure projects by tapping into savings like insurance and pension funds which have played a comparatively limited role in financing infrastructure."
By refinancing bank loans of existing projects, IDFs are also expected to take over a fairly large volume of the existing bank debt that will release an equivalent volume for fresh lending to infrastructure projects.
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