IFCI now better equipped for Make In India programme: Finance Ministry

NEW DELHI: Finance Ministry today said that IFCI, which has become a public sector company, is now better "equipped" to participate in ' Make In India' programme to make the country a global manufacturing hub.

IFCI, the country's oldest Financial Institution, become a government company with effect from April, 2015 with the government acquiring 6 crore preference shares of Rs 10 each of IFCI from certain public sector banks. Government holding in the company now stands at 51.04 per cent.

"Government Company, IFCI is now better equipped to participate in the country's growth movement by lending to diversified industries and thus contribute its share towards making 'Make In India' programme a success," the Ministry said in a statement.

IFCI was set up in 1948 as Industrial Finance Corporation of India, a statutory corporation to provide medium and long term finance to industry. After repeal of IFCI Act in 1993, it became a Public Limited Company.

The primary business of IFCI is to provide medium to long term financial assistance to the manufacturing, services and infrastructure sectors.

As part of its development mandate, IFCI was one of the promoters of National Stock Exchange (NSE), Stock Holding Corporation of India Ltd (SHCIL) and Technical Consultancy Organizations (TCOs). It was also one of the promoters of social sector institutions like Rashtriya Gramin Vikas Nidhi (RGVN), Management Development Institute (MOl) and Institute of Leadership Development (ILD).

Recently, CARE Ratings upgraded the rating assigned to debt instruments of IFCI upward from "CARE A" to "CARE A+" for long term borrowings, from "CARE A1" to "CAREA1+" for short term bank facilities and Commercial Papers and from "CARE A-" to "CAREA" for Subordinate Bonds.