Page 187 - DCOM304_INDIAN_FINANCIAL_SYSTEM

Indian Financial System

Notes projects. Such overseas lenders will not be able to comply with the 3:1 ratio," the official
explained.
The non-banking financiers want a level playing field vis-a-vis infrastructure companies
when it comes to tapping ECB under the 'automatic route' so that the credit needs of the
smaller infrastructure developers can be met without much ado.

While larger infrastructure players are able to source ECBs on their own, the smaller
players are not in a position to tap the overseas market. Hence, the smaller project
developers' bank on NBFCs for financing and the approval route causes unnecessary
delays.
Question

Discuss the role of NBFCs in infrastructure development in India.
Source: http://www.thehindubusinessline.in

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