Stating this at the Euromoney Conference, chairman and managing director, IFCI, K D Agarwal, said prudential and financing norms of FIs and banks have imposed certain limitations to infrastructure financing.

He said banks and FIs, whose large part of liabilities are short- to medium-term, may suffer from asset-liability mismatch by resorting to large-scale infrastructure financing until the time an exit route through securitisation is made available.

"IDFC can solve this problem by providing `take out financing' to these institutions after the initial phase of five to seven years of project operation," he added.

Agarwal also called for measures to tackle undue delays in obtaining techno-economic and environmental clearances for infrastructureprojects by ensuring a single window agency.

Absence of a suitable debt market and facilities for securitisation has been a great concern in India and the government will have to take necessary procedural, legal and administrative steps to solve this problem.

Commenting on sanctions and disbursals towards infrastructure projects, Agarwal said while sanctions have increased from Rs 1,148 crore in 1995-96 to Rs 4,176 crore in 1997-98, disbursements have gone up from Rs 361 crore three years ago to Rs 879 crore last year.

A major portion of IFCI's sanctions and disbursements for infrastructure sector has been accounted for by the power sector followed by telecom sector, he said.