IIFCL gets govt nod to double authorised capital to Rs 2k cr

NEW DELHI: The government has approved doubling of the authorised capital in infrastructure finance company IIFCL to Rs 2,000 crore. A decision to this effect was approved by the Union Cabinet here to help the company leverage its ability and enable it to build a strong resource base along with higher net worth over a period of time. The IIFCL Board has already approved the proposal.

IIFCL, a wholly-owned special purpose vehicle (SPV) floated by the government, was set up with a paid-up capital of Rs 10 crore and an authorised capital of Rs 1,000 crore. The company assists in infrastructure development up to 20% of the project cost.

IIFCL has set up a subsidiary in London to raise valuable funds to finance the core sector in India for providing world-class infrastructure and strengthening the economy. It can also borrow foreign exchange reserves up to $5 billion from the Reserve Bank of India and lend to Indian infrastructure companies for meeting their capital expenditure outside India.

The cabinet also approved implementation of ���Indian Leather Development Programme��� and cleared Rs 912 crore for development of infrastructure in the fast-growing leather industry during the 11th Plan period. ���The scheme would lead to development of infrastructure for the sector and facilitate additional investment and employment generation,��� information and broadcasting minister PR Dasmunsi said after the cabinet meeting.

The funds will be used for training, infrastructure development, and capacity as well as technology upgradation. The leather industry is estimated to have grown into a Rs 40,000 crore business, is growing at a rate of 20%.

The government also approved a new bill on weights and measures which proposes a substantial hike in penalty provisions and provides for private sector participation in lifting and testing of samples. The cabinet cleared the Indian Legal Metrology Bill, 2008, to be introduced in Parliament, which will replace Standards of Weights and Measures Act 1976 and Standards of Weights and Measures Enforcement Act 1985.