The SEBI chief said that the Central Government’s asset mudification scheme had previously contributed to the development of the market for the Infrastructure Investment Trust (Invits). Tuhin Kanta Pandey, head of the Securities and Exchange Board of India (SEBI), on Thursday urged the fast pace of mudification of assets organized by the government in areas such as railway, roads, airports and energy.
Speaking at an event organized by National Bank for Financing Infrastructure and Development (NABFID), Pandey said that such measures can help the channel investor money in infrastructure projects, PTI Report.
Pandey said that many state governments have not yet prepared plans for asset mudification. Addressing this difference, he said, opening additional resources can support the construction of infrastructure.
He said that the infrastructure requires large amounts of capital and the government and banks cannot carry the entire burden alone, highlighting the role of capital markets as an alternative.
The SEBI chief said that the Central Government’s asset mudification scheme had previously contributed to the development of the market for the Infrastructure Investment Trust (Invits). He said, “There is a need to speed up asset mudification in various areas such as roads, railways, ports, airports, energy, petroleum and logistics,” he said.
Route for infrastructure funding and investor base
Pandey underlined that the asset mood can occur through the Infrastructure Investment Trust (Invits), the Real Estate Investment Trust (REIT), Public-Private Partnership or Serecation. He said, “Relying only on banks or government budgets reveals us the concentration risk. On the other hand, the market, corporate bonds, index rates, municipal bonds present a palette of equipment,” he said.
Pandey also highlighted the role of capital markets in discipline norms, independent audit and investor investigation through investor investigation, saying that markets serve as “mentors of quality and reliability” in market infrastructure projects.
Meanwhile, NABFID managing director and chief executive Rajuran Rai expressed concern over the fall in interest from scheduled commercial banks in lending of infrastructure.
He said that non-bank finance companies and dedicated infrastructure loan funds are growing at a rate of about 10 percent, bank lending has signed. Rai said that “a lot of push” is required to encourage bank participation.
