‘Infrastructure’ status

Why in news?

• The Finance Ministry has granted ‘Infrastructure’ status for exhibition and convention centres, a move that is expected to ease bank financing for such projects.

About the status:

• This grant of status enables an industry to raise money from insurance companies, pension funds, and international lenders with a longer tenure and on easier terms.
• Infrastructure status gives industries access to cheaper foreign currency funding through the external commercial borrowing route.
• Falling under infrastructure category helps the sector get credit at competitive rates and on long-term basis with enhanced limits.
• Furthermore, the logistics sector will also be eligible to borrow from India Infrastructure Financing Company (IIFCL).

Prelims Question

Consider the following statements on  grant of Infrastructure status to an industry:
1.It is granted by Finance ministry.
2.The grant of status enables them to get cheaper credit.
Which of the statements given above is/are correct?
(a)1 only
(b)2 only
(c)Both 1 and 2
(d)Neither 1 nor 2

Answer to Prelims question