IIFCL sanctions Rs 6,475 cr for 58 road projects

India Infrastructure Finance Company Ltd (IIFCL) CMD S S Kohli today said the company has sanctioned loans worth Rs 6,475 crore for 58 road projects with a total project cost of Rs 37,678 crore.

"This is the largest sanction of loans to road projects by any financial institution in the country within a short span of three years," Kohli said at a FICCI convention here.     

He said out of the total amount of Rs 18,714 crore sanctioned by IIFCL so far, the sanctions for the road sector accounted for 35 per cent.     

"Of the sanctioned projects, in 54 cases financial closure has been achieved where IIFCL has been allocated loans of Rs 4,130 crore. The company has disbursed Rs 2,420 crore so far in 51 road projects," Kohli said.     

IIFCL will provide re-finance at 7.85 per cent with the provision that banks should not charge more than 2.5 per cent interest from developers for highways and port projects where re-finance is available at 10.35 percent.     

As part of the first fiscal stimulus package announced by the government, the company was allowed to raise Rs 10,000 crore by way of tax free bonds by March 2009. The funds raised by the company are being utilised for providing re-finance to banks for loans to infrastructure projects.