New Delhi: To provide long-term funding for infrastructure projects, government has finalized the broad structure of a proposed Infrastructure Debt Fund (IDF). The government can either introduce it as a trust or a company.

According to Finance Ministry, a trust-based IDF would be regulated by the Securities and Exchange Board of India (SEBI), while an IDF set up as a company would be regulated by the Reserve Bank of India.

Finance Minister Pranab Mukherjee, in his budget speech of 2011-12 had proposed an IDF with the aim to provide long-term funding for ambitious infrastructure projects of Country.

The proposed IDF would collect funds by investments from domestic and off-shore institutional investors, especially insurance and pension funds.

If set up as a trust, IDF would launch unit schemes maturing in five years.

If set up as company, non banking companies or IFCs would only be allowed to invest as sponsors. The company would be authorized to issue currency either in Rupees or Dollars. To collect funds, Company would launch scheme of five year bonds.

JPN/Bureau