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RBI 5/25 Scheme: A Path Finder for Some Infra Projects to Get Fresh Source of Finance

News

Lenders to Udupi Power Corporation and Krishnapatnam Port have refinanced a combined Rs 9,500 crore using the Reserve Bank of India’s (RBI) 5/25 scheme.

Source: Financial Express

SNP Insight

The RBI 5/25 scheme brought new source of financing for Udupi Power and Krishnapatnam Port. This may help these companies to restructure their debt and reduce their interest expenses. This may increase the net profit of these entities and make them more viable to get finance for future operation. This may also help these companies not to depend on fresh equities to service there debt. This may reduce the risk of financing for the banks and help them to manage their asset -liability miss match issues by providing short term financing for these companies. 

Source: SNP Infra Research