Bengaluru, Dec 10 (PTI): The Road Transport and Highways Ministry has sought a direction from the RBI to permit Indian banks to finance infrastructure projects for 30 years, instead of the earlier 20 years, union minister Nitin Gadkari said here on Tuesday.

He said he had met the RBI Governor in New Delhi, seeking a direction in this regard.

The Reserve Bank Governor gave a clear direction that we don't have any problem if banks are ready to finance for 30 years for infrastructure projects.

Earlier, the banks used to finance only for 20 years," Gadkari said at the inaugural sessin of the 10th edition of Excon-2019, a five-day International Construction Equipment and Construction Technology Trade Fair here.

Since getting bank guarantee was an issue for financing projects for such a long duration,it was agreed that projects would be insured, Gadkari said,adding a proposal has been submitted in this regard to the Finance Ministry.

We have already submitted the proposal and are expecting the clearance from the finance ministry.

In place of two per cent of the Bank guarantee now, we will make insurance for the project that will again clear the problem, the Minister said.

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