Infrastructure Development Bank Directed To Invest More Than Rs. 30 Crores Per Project
February 14, 2021 | Investopaper
Infrastructure Development Bank will not be allowed to invest less than Rs. 30 crores per project. Nepal Rastra Bank has issued the instructions to the bank by making such provision. The bank is established for investment promotion in the infrastructure sector.
According to the central bank, provision has been made to disburse loan only for projects related to infrastructure development. The bank will not be allowed to disburse the loan facility less than Rs. 30 crores per project. Similarly, it is mentioned in the directive issued by the central bank that this provision is not considered as an obstacle to provide loan of less than Rs. 30 crores even on the security of term deposit receipt.
The bank has been allowed to disburse up to 50 percent of its total loan balance for any type of project. According to the central bank, the details of project loan have to be submitted on a monthly basis. Infrastructure Development Bank will be able to invest in agricultural infrastructure. These include irrigation projects, moisture centers, agricultural warehouses, agricultural equipment manufacturing factories and commercial agriculture.
The Central Bank has stated that additional directives have been issued for the Infrastructure Development Bank in accordance with various directives of 2075 BS.
