New Delhi The power ministry has written to the Cabinet Committee on Infrastructure to mandate a uniform 50% risk weight to bank loans for state-owned Power Finance Corporation (PFC) and Rural Electrification Corporation (REC), a move which could lead to banks doubling their exposure to these companies if it finds favour with the Reserve Bank of India (RBI).
The power ministry has proposed a uniform risk weight of 50% for these two infrastructure financing companies (IFCs). At present, banks assign low risk weight only to top-rated IFCs, while others attract 100% risk weight.
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Links:
[1] http://admin.indiaenvironmentportal.org.in/news/power-min-more-lending-pfc-rec
[2] http://admin.indiaenvironmentportal.org.in/category/author/rajat-guha
[3] http://admin.indiaenvironmentportal.org.in/category/author/subhash-narayan
[4] http://admin.indiaenvironmentportal.org.in/category/newspaper/financial-express-new-delhi
[5] http://admin.indiaenvironmentportal.org.in/category/thesaurus/ministry-power
[6] http://admin.indiaenvironmentportal.org.in/category/thesaurus/power-industry
[7] http://admin.indiaenvironmentportal.org.in/category/thesaurus/rural-electrification
[8] http://admin.indiaenvironmentportal.org.in/category/thesaurus/india
[9] http://admin.indiaenvironmentportal.org.in/category/thesaurus/energy-policy
[10] http://admin.indiaenvironmentportal.org.in/category/thesaurus/energy
