Download Complete PDF - apctt

internationally recognized sources, such as international banks, international capitalmarkets, multilateral financial institutions, export credit agencies, suppliers ofequipment, foreign collaborators and foreign equity holders. According to RBI data,India secured more than US$36 billion in ECBs during 2011.Table 2-8: Major sources of financing and funds mobilizationSources of funds12th FYP estimations(in Rs billion)InvestmentsBy promoters for IPPs, IPTCs 804,81By promoters for NCES & captive power 567.80Internal resources 1,262.26Total equity (A) 2,634.87DebtScheduled commercial banks 2,704.55Power Finance Corporation (PFC) 1,782.59Rural Electrification Corporation (REC) 1,759.50Other infrastructure financing companies 364.27Bonds/debentures 1,405.41Multilateral/bilateral credits/ECBs 907.55Insurance companies 288.99Total debt (B) 9,212.86Total debt and equity (A+B) 11,847.73Notes: IPP = Independent power producer; IPTC = Independent powertransmission company; NCES = Non-conventional energy sources;ECBs = External commercial borrowings.Table 2-9: Debt/equity ratiosSector Debt EquityCentre 70 per cent 30 per centState 80 per cent 20 per centPrivate 75 per cent 25 per centTo ensure adequate supply of funds for the power sector, ECBs need to be appropriatelychannelized towards the sector, in the form of syndicated debt, tied financing/supplier’scredit or assistance from multilateral agencies. The rising cost of domestic borrowingscould lead to an increase in demand for ECBs among Indian companies. On the otherhand, the sliding value of the rupee will make ECBs more burdensome. Limited availabilityof long-term funds in overseas markets, with the lenders generally preferring to limittheir exposure to short-term tenure of up to five years, is an area of concern. Furthermore,global pressure on sustainability has forced all major commercial banks/institutions toensure that sustainability principles are duly ingrained into the project.72