New Upcoming Legal Jobs Free Workshop March 11 at 5 PM. Register here

    Question

    In the context of the Takeout Finance Scheme, which of

    the following is not an eligibility condition for an infrastructure project?
    A The project must be from a sector defined in clause 5.2 (c) of SIFTI. Correct Answer Incorrect Answer
    B The project must have achieved financial closure. Correct Answer Incorrect Answer
    C The project must have a residual debt tenor of at least 6 years. Correct Answer Incorrect Answer
    D The project must have a minimum debt service coverage ratio of 2 Correct Answer Incorrect Answer
    E The project must have provisional COD declared. Correct Answer Incorrect Answer

    Solution

    A minimum debt service coverage ratio is not an eligibility condition for infrastructure projects under the Takeout Finance Scheme. The eligibility criteria include: ·       The infrastructure project should be from sector(s ) as defined in clause 5.2 (c) of SIFTI, which currently includes o   Transport and Logistics – Roads, Bridges, Ports, Shipyard, Inland waterways, airport, railway tracks, railway rolling stock, railway terminal infrastructure, urban public transport, logictics infrastructure and bulk material transport pipelines o   Energy - Electricity Generation, Electricity Transmission, Electricity Distribution, Oil/Gas/Liquefied Natural Gas (LNG) storage facility, energy Storage Systems (ESS) o   Water and Sanitation - Solid Waste Management, Water treatment plants, Sewage collection, treatment and disposal system, Irrigation (dams, channels, embankments, etc.), Storm Water Drainage System o   Communication - Telecommunication (fixed network), Telecommunication towers, Telecommunication & Telecom Services, Data Centres o   Social and Commercial Infrastructure - Education Institutions, Sports Infrastructure, Hospitals (capital stock), Tourism infrastructure, Common infrastructure for Industrial Parks, infrastructure for agriculture and horticultural produce including cold storage, Cold Chain, Affordable Housing, Affordable Rental Housing Complex, Exhibition-cum-Convention Centre ·       Infrastructure projects which have achieved financial closure and have a residual debt tenor of at least 6 years . Projects where provisional COD has been declared

    Practice Next

    Relevant for Exams: