Infrastructure and growth of the company go together. Sound infrastructure encourages growth, but lack of infrastructure prevents its road. Inconsistency with the availability of adequate infrastructure is quite high in India. While states like Punjab, Haryana, Gujurat and Andhra Pradesh are attractive rich profits due to high levels of infrastructure, states such as Orissa, Bihar and Madhya Pradesh are at the bottom of the ladder for the opposite reason.
Structural structures are not responsible for central or regional government. Take an example of Punjab. You must conclude that major developments in the infrastructure sector stem from the high level of public participation. This model should be monitored everywhere in India. In order to make economic growth significant, government, public banks and private commercial banks should take progressive measures.
It is a fact that delay is part of the process of completing any kind of infrastructure. Thus, lending agencies are hesitant to offer commercial loans for infrastructure development. However, the Central Bank of India (RBI) has recently taken a positive step in this context. It has relaxed the benchmark that categorized infrastructure projects as a bank asset base. Now, RBI has issued a guide to launching corporate loans to build infrastructure after two years from the end date. Earlier, the exemption period was one year. Now, according to the new Guidelines, if industrial projects financed by public or private banks are delayed in excess of six months from the estimated date of manufacture, the lending agency must classify them as a standard asset.
Initiatives to recognize infrastructure projects as a sub-standard started in 2007. Now, RBI has relaxed this norm for six months. As the terms of the declaration are made free, the repayment of loans in business for infrastructure development has become easier. In its approach to recovering this type of business loan, RBI has been gracious and has accepted the fact that infrastructure projects are for delays that are beyond the control of the borrower. So it's no matter to punish the borrower for delay. The neworms will help build business loans from commercial banks easier and will direct the fuel structure directly.
How the borrower will be banned?
Take an example of road construction. The developer lends from the commercial banks for this reason. He hopes to start collecting duties as soon as the project is completed. But for some unavoidable reasons, the project is postponed. The delays put the borrower into helplessness and repaying the loan amount is no cash flow. Under such circumstances, the relaxed term comes under a standardized rescue report. In case of delays in construction, the Bank's investment is not classified as NPA.