The decision of the Insurance Regulatory and Development Authority of India (IRDA) to allow insurance companies to invest in infrastructure funds is a welcome move that will benefit both the issuers of bonds as well as the investing companies.
The insurance companies need to invest their growing corpus of long term liabilities in projects that will yield stable and continuous returns year after year while the infrastructure companies need long-term funding to implement projects. But the problem of the infrastructure sector is not really paucity of funds.
For more on this and issues bothering infrastructure growth and development, read EconomicTimes
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