Saturday, 29 December 2012

RBI notifies the Definition of 'Infrastructure Loan' for NBFCs


RBI/2012-13/351
DNBS.PD.CC.No. 317/03.10.001/2012-13
December 28, 2012
All NBFCs
Dear Sir/Madam,
Definition of 'Infrastructure Loan' of NBFCs - Harmonisation

Please refer to RBI’s circular DBOD.No.BP.BC.58/ 08.12.014/2012-13 dated November 20, 2012 on ‘Second Quarter Review of Monetary Policy 2012-13 – Definition of Infrastructure Lending' in terms of which the definition of ‘infrastructure lending for the purpose of financing of infrastructure by the banks and Financial Institutions’ has been harmonized with that of the Master List of Infrastructure sub-sectors’ notified by the Government of India on March 27, 2012. It has been decided to harmonise the definition of infrastructure lending for NBFCs with that of banks.

2. Accordingly, the extant definition of infrastructure loan given in the NBFC Prudential Norms Directions, 2007 stands amended with immediate effect. The revised definition of ‘infrastructure loan’ is given in the Annex to this circular. Also please find enclosedthe amending notification of date for meticulous compliance.

3. The exposure of NBFCs to projects under sub-sectors which were included under our previous definition of infrastructure, but not included under the revised definition, will continue to get the benefits under ‘infrastructure lending’ for such exposures till the completion of the projects. However, any fresh lending to those sub-sectors from the date of this circular will not qualify as ‘infrastructure lending’.
Yours faithfully,
(C.R.Samyuktha) 
Chief General Manager


Annex
List of sub-sectors for ‘Infrastructure Loan’
“Infrastructure loan” means a credit facility extended by NBFCs to a borrower for exposure in the following infrastructure sub-sectors:
Sl.No.
Category
Infrastructure sub-sectors
1.
Transport
i. Roads and bridges 
ii. Ports
 
iii. Inland Waterways
 
iv. Airport
 
v. Railway Track, tunnels, viaducts, bridges1
 
vi. Urban Public Transport (except rolling stock in case of urban road transport)
2.
Energy
i. Electricity Generation 
ii. Electricity Transmission
 
iii. Electricity Distribution
 
iv. Oil pipelines
 
v. Oil/Gas/Liquefied Natural Gas (LNG) storage facility2
 
vi. Gas pipelines3
3.
Water & Sanitation
i. Solid Waste Management 
ii. Water supply pipelines
 
iii. Water treatment plants
 
iv. Sewage collection, treatment and disposal system
 
v. Irrigation (dams, channels, embankments etc)
 
vi. Storm Water Drainage System
4.
Communication
i.Telecommunication (Fixed network) 4 
ii. Telecommunication towers
5.
Social and Commercial Infrastructure
i. Education Institutions (capital stock) 
ii. Hospitals (capital stock)5
 
iii. Three-star or higher category classified hotels located outside cities with population of more than 1 million
iv. Common infrastructure for industrial parks, SEZ, tourism facilities and agriculture markets
 
v. Fertilizer (Capital investment)
 
vi. Post harvest storage infrastructure for agriculture and horticultural produce including cold storage
vii. Terminal markets
 
viii. Soil-testing laboratories
 
ix. Cold Chain6
Notes:


RESERVE BANK OF INDIA
DEPARTMENT OF NON-BANKING SUPERVISION
CENTRAL OFFICE
CENTRE I, WORLD TRADE CENTRE,
CUFFE PARADE, COLABA,
MUMBAI 400 005.
Notification no. DNBS. 253/CGM(CRS)-2012 dated December 28, 2012
The Reserve Bank of India, having considered it necessary in public interest and being satisfied that, for the purpose of enabling the Bank to regulate the credit system to the advantage of the country, it is necessary to amend the Non-Banking Financial (Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 (hereinafter referred to as the said Directions) contained in Notification No. DNBS. 192/DG(VL)-2007 dated February 22, 2007, in exercise of the powers conferred by section 45JA of the Reserve Bank of India Act, 1934 (2 of 1934) and of all the powers enabling it in this behalf, hereby directs that the said Directions shall be amended with immediate effect as follows-
Amendment of paragraph 2(1)(viii)-
Paragraph 2(1) (viii) may be replaced with the following:
“Infrastructure loan” means a credit facility extended by NBFCs to a borrower for exposure in the following infrastructure sub-sectors:
Sr.No.
Category
Infrastructure sub-sectors
1.
Transport
i. Roads and bridges 
ii. Ports
 
iii. Inland Waterways
 
iv. Airport
 
v. Railway Track, tunnels, viaducts, bridges
1 
vi. Urban Public Transport (except rolling stock in case of urban road transport)
2.
Energy
i. Electricity Generation 
ii. Electricity Transmission
 
iii. Electricity Distribution
 
iv. Oil pipelines
 
v. Oil/Gas/Liquefied Natural Gas (LNG) storage facility
2 
vi. Gas pipelines
3
3.
Water & Sanitation
i. Solid Waste Management 
ii. Water supply pipelines
 
iii. Water treatment plants
 
iv. Sewage collection, treatment and disposal system
 
v. Irrigation (dams, channels, embankments etc)
 
vi. Storm Water Drainage System
4.
Communication
i. Telecommunication (Fixed network)4 
ii. Telecommunication towers
5.
Social and Commercial Infrastructure
i. Education Institutions (capital stock) 
ii. Hospitals (capital stock)
5 
iii. Three-star or higher category classified hotels located outside cities with population of more than 1 million
 
iv. Common infrastructure for industrial parks, SEZ, tourism facilities and agriculture markets
 
v. Fertilizer (Capital investment)
 
vi. Post harvest storage infrastructure for agriculture and horticultural produce including cold storage
 
vii. Terminal markets
 
viii. Soil-testing laboratories
 
ix. Cold Chain
6
Notes:
1. Includes supporting terminal infrastructure such as loading/unloading terminals, stations and buildings
2. Includes strategic storage of crude oil
3. Includes city gas distribution network
4. Includes optic fibre/cable networks which provide broadband / internet
5. Includes Medical Colleges, Para Medical Training Institutes and Diagnostics Centres
6. Includes cold room facility for farm level pre-cooling, for preservation or storage of agriculture and allied produce, marine products and meat.
(C.R.Samyuktha) 
Chief General Manager


RESERVE BANK OF INDIA
DEPARTMENT OF NON-BANKING SUPERVISION
CENTRAL OFFICE
CENTRE I, WORLD TRADE CENTRE,
CUFFE PARADE, COLABA,
MUMBAI 400 005.
Notification no. DNBS. 254/CGM(CRS)-2012 dated December 28, 2012
The Reserve Bank of India, having considered it necessary in public interest and being satisfied that, for the purpose of enabling the Bank to regulate the credit system to the advantage of the country, it is necessary to amend the Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 (hereinafter referred to as the said Directions) contained in Notification No. DNBS. 193/DG(VL)-2007 dated February 22, 2007, in exercise of the powers conferred by section 45JA of the Reserve Bank of India Act, 1934 (2 of 1934) and of all the powers enabling it in this behalf, hereby directs that the said Directions shall be amended with immediate effect as follows, namely -
Amendment of paragraph 2(1)(viii)-
Paragraph 2(1)(viii) may be replaced with the following:
“Infrastructure loan” means a credit facility extended by NBFCs to a borrower for exposure in the following infrastructure sub-sectors:
Sr.No.
Category
Infrastructure sub-sectors
1.
Transport
i. Roads and bridges 
ii. Ports
 
iii. Inland Waterways
 
iv. Airport
 
v. Railway Track, tunnels, viaducts, bridges
1 
vi. Urban Public Transport (except rolling stock in case of urban road transport)
2.
Energy
i. Electricity Generation 
ii. Electricity Transmission
 
iii. Electricity Distribution
 
iv. Oil pipelines
 
v. Oil/Gas/Liquefied Natural Gas (LNG) storage facility
2 
vi. Gas pipelines
3
3.
Water & Sanitation
i. Solid Waste Management 
ii. Water supply pipelines
 
iii. Water treatment plants
 
iv. Sewage collection, treatment and disposal system
 
v. Irrigation (dams, channels, embankments etc)
 
vi. Storm Water Drainage System
4.
Communication
i. Telecommunication (Fixed network)4 
ii. Telecommunication towers
5.
Social and Commercial Infrastructure
i. Education Institutions (capital stock) 
ii. Hospitals (capital stock)
5 
iii. Three-star or higher category classified hotels located outside cities with population of more than 1 million
 
iv. Common infrastructure for industrial parks, SEZ, tourism facilities and agriculture markets
 
v. Fertilizer (Capital investment)
 
vi. Post harvest storage infrastructure for agriculture and horticultural produce including cold storage
 
vii. Terminal markets
 
viii. Soil-testing laboratories
 
ix. Cold Chain
6
Notes:
1. Includes supporting terminal infrastructure such as loading/unloading terminals, stations and buildings
2. Includes strategic storage of crude oil
3. Includes city gas distribution network
4. Includes optic fibre/cable networks which provide broadband / internet
5. Includes Medical Colleges, Para Medical Training Institutes and Diagnostics Centres
6. Includes cold room facility for farm level pre-cooling, for preservation or storage of agriculture and allied produce, marine products and meat.
(C.R.Samyuktha)
Chief General Manager

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