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.
However, certain dimensions need to be kept in mind while assessing the success of the model. Infrastructure financing presents quite a few challenges viz., little tangible security, high debt equity ratio, long implementation and repayment periods, etc. Banks and financial  BIS central bankers’ speeches  7  institutions have over the years gained experience and expertise in assessing and pricing these risks.