Govt to provide capital funds to India Infrastructure Finance Company Ltd. (IIFCL)

The Union Cabinet approved the proposal to provide capital funds of Rs. 400 crore to the India Infrastructure Finance Company Ltd (IIFCL) during 2013-14 with a proviso 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.