Govt extends CFS scheme for infrastructure projects
In a bid to ensure smooth delivery and implementation of the projects, the government has extended the Concessional Financing Scheme (CFS) for five years to support Indian entities bidding for strategically important infrastructure projects on foreign shores. Also, the scheme will now cover all Indian entities, compared to the earlier stipulation of minimum 75% Indian shareholding. Under the scheme, the government provides counter guarantee and interest equalization of 2 percent to EXIM Bank to offer concessional finance to any foreign government or foreign government owned/controlled entity if any Indian entity succeeds in getting a contract for the execution of the project. Under the CFS, the government has been supporting Indian entities bidding for strategically important infrastructure projects abroad since 2015-16. Since the objectives of the scheme continue to be relevant, it has been for another five years from 2018 to 2023. Prior to this, only those companies which had a minimum of 75% shareholding of Indians were eligible to take benefit of the scheme. The scheme has now been liberalized and any Indian company, irrespective of the ownership, will be eligible to benefit from the scheme, said finance minister
