Larsen and Toubro Infrastructure Finance Company (L&T Infra) Thursday said the Reserve Bank of India (RBI) has accorded it the status of a "infrastructure finance company".
This will help L&T Infra, a subsidiary of engineering and construction major Larsen and Toubro (L&T), to mobilise funds at cheaper rates and provide more flexibility in its lending to infrastructure projects.
“Larsen & Toubro Infrastructure Finance Company has received the status of 'infrastructure finance company' from the Reserve Bank of India within the overall classification of non-banking finance company (NBFC)," said the company in a regulatory statement.
The RBI has carved out a separate segment for financing of infrastructure projects from the NBFC group to remove the lending limits applicable to the latter type of institutions.