Rs.2,600 crore capital infusion in IIFCL approved

The central government on Wednesday said it has given its ex-post facto approval to the capital infusion to the tune of Rs.2,600 crore made in India Infrastructure Finance Company Ltd. (IIFCL).

The infusion - which was made during the fiscal period 2008 to 2013 - was made as approved in the Demands for Grants and consented to by union Finance Minister Arun Jaitley to support the future growth of the company.A

IFCL is a wholly owned central government enterprise which was incorporated on January 5, 2006 with an authorised share capital of Rs.1,000 crore. The manin objective of the company, which commenced operations from April 2006, is channelising long-term finance to viable infrastructure projects in terms of the Scheme for Financing Viable Infrastructure Projects.

The sectors eligible for financial assistance are the harmonized list of infrastructure sub-sectors as approved by the Cabinet Committee on Infrastructure on March 1, 2012. These include transportation, energy, water, sanitation, communication, social and commercial infrastructure.

According to its website, the authorised and paid-up capital as on December 31, 2014 stood at Rs.5,000 crore and Rs.3,900 crore respectively.

On a standalone basis, IIFCL has made cumulative gross sanctions of Rs.60,220 crore under direct lending to 344 projects and has made cumulative disbursements of Rs.36,941 crore as on December-end last year.