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Cabinet eases borrowing norms for state govt to fund infra projects

Friday, 21 Apr 2017
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The Union cabinet has eased borrowing norms for the state government to fund infrastructure projects in the country.

The cabinet has allowed the state government entities to directly borrow from bilateral agencies from other countries like Japan, US and Germany to fund its infrastructure projects

The move will provide greater flexibility to the state public sector undertakings (SPSUs).

The move will now allow the state entities to directly borrow and repay the loan required for major infrastructure projects without burdening the state exchequer.

The country plans to invest around Rs 3.96 trillion in FY 2018 to fund its new integrated infrastructure model comprising roads, railways, waterways and civil aviation.

Government of India
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