The IDFNBFC can raise resources through issue of either rupee or dollar denominated bonds of minimum five year maturity. IDFs are expected to channelize funds from insurance companies, pension funds and other long term sources into infrastructure sector. This will provide an alternative source of foreign currency funds for the infrastructure projects.
For the most part, these firms offer information-based goods which are sold online. It is a business model that involves substantial fixed costs but barely any variable costs. Just take the video-on-demand platforms – whether they have a large or a small customer base has little bearing on their overall costs.