Providing exemptions to banks from CRR and SLR obligations by linking those to long-term infrastructure loans is a masterstroke and can prove to be a game-changer in the field of infrastructure financing. It will also help mobilising funds through issue of infrastructure bonds, the CMD said.
“The proposed Infrastructure Investment Funds on the lines of Real Estate Investment Funds is another positive step. We have been advocating for allowing tax pass-through for such funds for quite some time. This will help mobilise more funds for infrastructure from both India and abroad,” Kanoria said according to a release issued by the company.
In addition, addressing the concerns of foreign portfolio investors; bringing clarity on long-term capital gain tax issue will facilitate more fund houses currently operating from overseas, to shift their base to India. This can provide a fillip towards setting up financial hubs in India.
Curated from www.thehindubusinessline.com