By Accommodation Times News Service
The Union Cabinet approved the proposal to provide capital funds of Rs. 400crore to the India Infrastructure Finance Company Ltd (IIFCL) during 2013-14 with a provision that further release within the authorized capital may be made with the approval of Finance Minister subject to budgetary allocations being available. It will help IIFCL in funding viable infrastructure projects through long term debt, takeout finance and credit enhancement.
This will supplement the available long term finance for commercially viable infrastructure projects and enable raising long term funds from domestic and overseas markets including bilateral and multilateral institutions at low-cost for onward long-term lending to infrastructure sector.
IIFCL, a wholly owned Government of India company, was incorporated on January 5, 2006 under the Companies Act, 1956 with an authorized capital of Rs. 1000crore. It commenced its operations from April 2006. IIFCL provides long term debt to viable infrastructure projects in terms of the Scheme for Financing Viable Infrastructure Projects through IIFCL.