TAKE OUT FINANCING
Take Out Financing The development of the infrastructure sector is important for the development of the country. In this sector, roads, bridges, railways, ports, airports, inland waterways and other transportation projects, power generation, urban transport systems, water supply, sewerage schemes, solid waste management, gas pipelines, international convention centers, tourism projects, cold storage chains., godowns etc. There are three major aspects to be considered while financing the development of such infrastructure sectors. 1. A huge amount of investment is required to build such projects. 2. Gestation period of projects is very long. 3. A very big risk in the early stage of projects, which is that project Decreases after initiation. These three factors limit the financing of the structural sector. The investment in the project is so large that only one or two such projects can fit within the exposure l
