IIFC to tap debt market soon
A finance ministry official said it is up to IIFCL to raise debt from Indian markets or overseas market.
By PTI |
NEW DELHI: Government on Wednesday said India Infrastructure Finance Company Ltd (IIFCL) would soon tap the debt market to raise funds, for which sovereign guarantee to the tune of Rs 10,000 crore would be provided in a year.
"We have guaranteed them (IIFCL) to the extent of Rs 10,000 crore that the company will raise in the debt market," Finance Minister P Chidambaram told reporters on the sidelines of CII function on infrastructure.
The Finance Minister specified that the company remains a 100 per cent government-owned company, which means that there are no plans by the company to tap the equity market.
A finance ministry official said it is up to IIFCL to raise debt from Indian markets or overseas market, including multilateral agencies, but the Government would provide sovereign guarantee against these loans to the extent of Rs 10,000 crore in a year.
IIFCL has so far sanctioned about Rs 5,000 crore for 31 projects, but disbursement has started only in one or two projects.
Pointing out that skills of private sector and responsibility of Government have to "marry" to develop infrastructure, Chidambaram said 13 projects in public-private partnership (PPP) involving Rs 5,635 crore have been cleared.
Six other PPP proposals are under consideration and five others are in the advance stage of finalisation.
Chidambaram said 17 projects involving Rs 3,970 crore of investments under Viability Gap Funding (VGF) have been granted in-principle approval.
As many as 14 proposals under VGF have some outstanding issues that are being resolved, while four others have come to the Government for approval recently, he said.
Chidambaram asked the Finance Secretary to put a note on how to use forex reserves for infrastructure projects, which require a whopping $320 billion in the next five years.
"We have guaranteed them (IIFCL) to the extent of Rs 10,000 crore that the company will raise in the debt market," Finance Minister P Chidambaram told reporters on the sidelines of CII function on infrastructure.
The Finance Minister specified that the company remains a 100 per cent government-owned company, which means that there are no plans by the company to tap the equity market.
A finance ministry official said it is up to IIFCL to raise debt from Indian markets or overseas market, including multilateral agencies, but the Government would provide sovereign guarantee against these loans to the extent of Rs 10,000 crore in a year.
IIFCL has so far sanctioned about Rs 5,000 crore for 31 projects, but disbursement has started only in one or two projects.
Pointing out that skills of private sector and responsibility of Government have to "marry" to develop infrastructure, Chidambaram said 13 projects in public-private partnership (PPP) involving Rs 5,635 crore have been cleared.
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Six other PPP proposals are under consideration and five others are in the advance stage of finalisation.
Chidambaram said 17 projects involving Rs 3,970 crore of investments under Viability Gap Funding (VGF) have been granted in-principle approval.
As many as 14 proposals under VGF have some outstanding issues that are being resolved, while four others have come to the Government for approval recently, he said.
Chidambaram asked the Finance Secretary to put a note on how to use forex reserves for infrastructure projects, which require a whopping $320 billion in the next five years.
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