Indian infra waits $ 550-mn infusion

In a major funding booster for the road sector, the American PE firm, Lone Star Funds and IL&FS, will jointly invest $550 million in infrastructure projects in the country, said official sources, elaborating that the JV will have an investment capital pool of $550 million, which could result in asset purchases of upto $2.5 billion. The JV seeks to assist Banks, Sponsors, and Asset Reconstruction Companies (ARCs) recycle capital, thus, permitting reinvestment capital in fresh projects. The progress has been measured, but the recent changes in the regulatory framework bode well for the resolution of such projects. The banking sector has been saddled with bad loans of about Rs.7 lakh-cr with about 12.34% of borrowers defaulting on their loans. A large portion of the stress is contributed by the infrastructure, power, and steel sector.