Leaving aside a couple of them, India’s NBFCs do not qualify for long-term funds from RBI or from anyone else. Banks could offer medium-term loans but are chary of providing additional loans, because of the NPAs they have accumulated. So, infrastructure companies, including real estate developers, have come to depend on short-term funding from NBFCs and constant rolling over of these loans. The way out is for the struggling projects to get decent dollops of longterm funds that would finance the projects to completion.Who can provide the funds and on what terms? Costs are typically padded to let the promoter take out a tidy sum in the course of the project’s implementation.

Source: Economic Times June 12, 2019 18:01 UTC