Infra funding firms get PFI status

Mumbai : Infra funding firms get PFI status Extending major relief to infrastructure funding firms, the government has amended guidelines for Public Financial Institutions (PFIs) allowing private players engaged infra funding to get the status of a PFI making eligible for tax and other benefits.

As per amended norms any player which has been in existence for more than three years and earns more than 50 percent income from industrial and infrastructural financing can opt to be a public financial institution.To be eligible for such sops the company should be established under a special Act or under the Companies Act and its main business must be industrial and infrastructural financing.

In addition to this, the firms must have a net worth of Rs. 1,000cr and should be registered as an infrastructure finance company with the Reserve Bank of India as a housing finance company