Govt to infuse Rs 60 cr in IFCI, raise stake to 51%

The Cabinet has approved the finance ministry’s proposal to raise the government’s stake in development financial company IFCI from 47.93 per cent to 51 per cent, by infusing Rs 60 crore. “The Union Cabinet chaired by Prime Minister Narendra Modi approved infusion of Rs 60 crore in Industrial Finance Corporation of India (IFCI) to make it a government company by way of acquisition of preference shares from existing shareholders," a government statement issued on Monday said. IFCI, India’s oldest financial institution, was set up in 1948 as a statutory corporation under the Industrial Finance Corporation Act, 1948. The Act has since been repealed by the Industrial Finance Corporation (Transfer of Undertaking and Repeal) Act, 1993 and IFCI Ltd was registered under the Companies Act, 1956 on March 31, 1993, the statement noted. IFCI's total paid-up capital of Rs 1,926 crore comprised Rs 1,662 crore as equity capital and Rs 264 crore as preference share capital.

The Cabinet also approved an Ordinance to regularise 895 unauthorised colonies of Delhi, which have come up till June 1, 2014. The move will benefit about six million people residing in such colonies.

Additionally, the Cabinet approved leasing of Airports Authority of India’s land at Juhu, Vizag, Tuticorin, and Porbandar airports to the Indian Navy and Coast Guard to enable them to expand their air operation facilities.