Youtube Video Link - https://youtu.be/i6C2lRQx8WY Infrastructure refers to the physical structure and facilities needed for development of an area and operation of economy & society. Major projects covered under definition of infrastructure are roads, bridges, highways, port, railways, airport, sanitation, sewerage system, industrial park, broadband network, telecommunication network and internet setup. In earlier days development of infrastructure was considered to be responsibility of government and there was no role of private sector involvement. Due to drawbacks like limited capital, slow development and quality of service, private companies were engaged in this sector. This led to existence of Public Private Partnership Model (PPP Model) which involved contractual partnership between government and private sector companies to operate infrastructure projects. Infrastructure Financing With growing prominence of infrastructure in economic development, big corporates like Tatas, Birlas and Ambanis invested capital in setting up of infrastructure development companies. Compared to other sectors, the demand for bank loan from infrastructure projects was huge and this came as an opportunity for banks to encash big projects. To provide huge loan requirements for these infra projects, banks started the concept of corporate funding like consortium finance, loan syndication which involved multiple banks coming together to advance the credit/ loan. As per RBI guidelines the amount of loan sanctioned should be within overall ceiling of prudential exposure as prescribed for infrastructure financing. RBI also mentioned that the Banks/ FIs should have the requisite expertise for credit evaluation of infra projects in terms of financial viability, technical feasibility, risk & sensitivity analysis, due diligence. Thank You For Watching Subscribe To DevTech Finance