The Harmonised Master List (HML) of infrastructure sub-sectors has emerged as a strategic framework facilitating various significant advancements in the domain of infrastructure development and funding mechanisms. Inclusion in the HML not only streamlines the identification and classification of infrastructural components but also unlocks a spectrum of benefits and opportunities for the sector’s growth and financing.
One of the pivotal advantages of being listed in the HML is the facilitation it offers in accessing infrastructural lending. This inclusion enables easier access to financing through External Commercial Borrowings (ECB), fostering the infusion of capital at favorable terms into infrastructure projects. Moreover, it opens pathways for availing longer tenor funds from insurance companies and pension funds, broadening the scope for sustained financial support crucial for large-scale infrastructure ventures. Additionally, borrowing from significant financial institutions such as the India Infrastructure Financing Company Limited (IIFCL) is streamlined, amplifying the avenues for funding and project execution.
The formulation and implementation of the Harmonised Master List (HML) involved the expertise of an expert committee led by Shri Bibek Debroy, the Chairman of the Economic Advisory Council (EAC) to the Prime Minister. This committee was entrusted with the task of conducting a comprehensive assessment of the defining characteristics and parameters of infrastructure. Furthermore, it was mandated to devise a robust financing framework for the “Amrit Kaal” – an era marked by transformative developments and strategic initiatives in the infrastructure domain.
In another significant stride towards bolstering infrastructure financing, the National Investment and Infrastructure Fund (NIIF) introduced its inaugural bilateral fund, the India-Japan Fund, in collaboration with the Japan Bank for International Cooperation (JBIC). With a target corpus of $600 million, the India-Japan Fund (IJF) embodies a collaborative effort between JBIC and the Government of India (GoI), with both entities serving as anchor investors. The IJF primarily focuses on investing in environmental sustainability and low carbon emission strategies, underlining its commitment to fostering environmentally conscious infrastructure development.
Moreover, NIIF is actively engaged in collaboration with the U.S. International Development Finance Corporation (USDFC) towards the establishment of a multi-billion dollar green-transition credit fund. This initiative is poised to further augment efforts in advancing sustainable infrastructure projects and reinforcing the infrastructure landscape’s resilience and environmental stewardship.
The strategic delineation of the Harmonised Master List (HML) and the pivotal initiatives taken by entities like NIIF and collaborations with global counterparts underscore a paradigm shift towards comprehensive infrastructure development and sustainable funding mechanisms. These measures reflect a concerted effort towards harnessing innovative financing approaches, ensuring robust infrastructural growth, and fortifying the foundation for a sustainable and resilient future.