"The Indian institutions are capable and willing to support big complicated projects besides introducing new financial products," Verma said chairing a session on `financial and consulting services' at the global Indian entreprenuers conference organised by Ficci.

It has become a common thing for financial institutions to fund Rs 1000 crore for single "fairly complicated projects," he said.

Further, separate financial institutions are set-up to take care of specific needs of various sectors.

Infrastructure Development Finance Company (IDFC) was set up to fund projects only in infrastructure sector, he said adding introduction of various innovative financial products by institutions like IDFC was changing the funding structure in the country.

IDFC had introduced new products like`take-out funding', which would use the surplus resources in banks to fund long-gestation infrastructure products. Verma said Indian financial system would witness launch of new products like interest hedge instruments in a few months time.

"The measures in the recent credit policy have brought the introduction of interest hedging products just months away," he said.

On the conditionalities that institutions attach while funding big projects, Verma said "conditionalities are to contain risk and financial institutions have to make sure that the risks are minimised to the maximum."

On whether SBI would allocate proceeds of Resurgent India Bonds (RIBs) in setting up rural infrastructure, Verma said rural segment was currently meeting its funding needs on its own.

On the infrastructure as a whole, "India would require Rs 30 billion per year and Rs 4.5 billion (RIB proceeds) is just a drop in the ocean," he said.

Earlier, chairman of Industrial Finance Corporation of India (IFCI) PV Narasimham said theFI was capable of handing Rs 2.5-3 billion worth single projects.

He said many of the NRIs, who come for project approval locate their plant in areas, which would make them unviable.

"Location plays a key role on the viability of projects," he said.