Power bonds planned for mega projects

  • 18/05/1998

  • Business Standard (New Delhi)

The government is planning to issue 'power bonds' for mega power projects to fund the escrow-guarantee mechanism. Infrastructure Development Finance Corporation (IDFC) is expected to stand guarantee to these bonds, which would have a moratorium on interest payments during the construction phase of a project. The bonds would give the promoter a cushion for three months of power sales by IPP.