India Considers Private Banks to Plug $1.5 Trillion Infrastructure Gap
- Firms would provide long-term funds for roads, ports, bridges
- SREI, Power Finance may apply for licenses: CLSA India
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India is considering turning to the private sector to help plug a chronic shortage of capital for infrastructure projects.
The Reserve Bank of India is proposing Asia’s third-largest economy offer licenses to private companies to set up infrastructure banks. That could help finance $1.5 trillion in roads, ports, power and other projects over the next 10 years and bridge a gap that ratings agency Standard & Poor’s says is shaving off almost 5 percent of the country’s gross domestic product.