IIFCL to get fund support of Rs 400 cr from govt

NEW DELHI: The government today cleared the proposal to provide capital support of Rs 400 crore to the India Infrastructure Finance Company Ltd ( IIFCL) for funding of viable infrastructure projects through long-term debt.

The fund infusion will be made during 2013-14 with the approval of Finance Minister subject to budgetary allocations being available, an official statement said after the Cabinet meeting here.

It will help IIFCL in funding viable infrastructure projects through long-term debt, takeout finance and credit enhancement, it said.

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, it said.

IFCL, wholly-owned by the Government of India, provides funds --- especially debt of longer-term maturity --- directly to eligible projects to supplement other loans from banks and financial institutions.

Set up in 2006, IIFCL's authorised capital was enhanced to Rs 2,000 crore from Rs 1,000 with the approval of Cabinet on August, 2008.

It was further enhanced with the approval of Cabinet on in October, 2011 to Rs 5,000 crore with a proviso that it may be further increased to Rs 8,000 crore with the approval of the Finance Minister.

At present, the authorised and paid-up capital of IIFCL is Rs 5,000 crore and Rs 2,900 crore, respectively.