By its circular No.DNBR.021/CGM (CDS) - 2015 dated 14 May 2015 (the "Circular"), the Reserve Bank of India ("RBI") has amended the Infrastructure Debt Fund-Non-Banking Financial Companies (Reserve Bank) Directions, 2011 ("Directions") to permit Infrastructure Debt Fund-Non-Banking Financial Companies ("IDF-NBFCs") to undertake investments in (i) non- PPP projects, and (ii) PPP projects without a project authority, in sectors where there are no project authority, provided that, in both the cases, such infrastructure projects have satisfactorily completed one year of commercial operation.
Earlier, IDF- NBFCs were permitted to invest only in PPP post one year of completion of the commercial operation of such infrastructure projects and subject to execution of a tripartite agreement with the relevant project authority.
By virtue of the Circular, the relevant provisions of Non-Banking Financial (Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007, Systemically Important Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2015 and Non-Systemically Important Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2015 have been amended and modified accordingly.
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