Rakesh Mohan, economic affairs secretary, today said the financial system has surplus liquidity of about Rs 1,00,000 crore due to huge foreign exchange flows, and the proposed special purpose vehicle (SPV) for infrastructure development could raise resources from the domestic market."The Reserve Bank of India's liquidity adjustment facility has absorbed over Rs 40,000 crore, and the market stabilisation scheme (MSS) has issued securities of over Rs 60,000 crore," Mohan said while addressing a CFO Summit organised by the CII today.There was no shortage of resources in the system and the lowest point for excess funds has been Rs 85,000 crore in the last 14 months, Mohan said."The SPV, proposed in the union budget for financing large road, port and airport projects, could raise funds at competitive rates with 100% government guarantee, and, in turn, lend them to projects on a long-term basis," he added.
