The banks’ exposure to infrastructure lending has grown by over 3.7 times between March 2005 and 2009. Still a large part of the gap in demand over the supply of bank credit is explained by the inadequate commercialisation of projects for regulatory, political and legal constraints and total absence or insufficiency of user charges in many sectors.
Therefore, the current issue to meet the demand for infrastructure finance by the banks arise from the bankable and commercially viable projects. Measures taken by the Reserve Bank of India 16. Several new initiatives have been initiated by the central government and the Reserve Bank in the recent years.