A final structure of the Infrastructure Debt Funds (IDFs), proposed in the Union Budget, has emerged following wide-scale consultations held with potential investors, infra companies, regulators and experts:i. An IDF may be set up either as a Trust or as a company registered in India. A trust based IDF would normally be a Mutual Fund (MF) that would issue units while a company-based IDF would normally be a form of NBFC that would issue bonds;ii. The investors would primarily be domestic and off-shore institutional investors, especially Insurance and Pension Funds who have long term resources. Banks and FIs would only be allowed to invest as sponsors of an IDF.iv. In case of an IDF that issues bonds, credit enhancement inherent in Public Private Partnership (PPP) projects would be available. Such IDFs would refinance PPP projects after their construction is completed and they have successfully operated for at least one year. Such projects would have a higher credit rating. Such a structure would enable flow of Insurance and Pension Funds at competitive costs.v. In case of IDFs that issue units, greater credit risk would be borne by the investors who will be free to seek correspondingly higher returns. MFs would be especially useful for non-PPP projects.