New Delhi: The Government plans to introduce tripartite agreements under infrastructure debt fund for airports developed under public private partnership (PPP). This will help private infrastructure developers and banks to switch from short-term to long-term funds and cut interest costs.
Such a move will help the existing PPP airports in Delhi, Mumbai, Hyderabad and Bangalore. This kind of arrangement will help in reducing the interest cost on long-term debt by at least by 2 percentage points.
Mr Syed Naseem Zaidi, Secretary in the Ministry of Civil Aviation, said, “The tripartite agreement will be between PPP concessioners, banks and the infra debt fund.”
This will facilitate transfer of debts from banks to debt fund. On the one hand, this will release funds for banks to lend to other sectors, while on the other hand this will reduce interest rates, he added.
10/04/12 Business Line
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