IIFCL operational control may move to economic affairs dept

The finance ministry has mooted a proposal to transfer operational control of India Infrastructure Finance Corporation Limited (IIFCL) to Department of Economic Affairs as its nature of funding has changed.

Currently, IIFCL is under administrative control of Department of Financial Services, which also controls public sector banks and financial institutions.

"There is a Cabinet announcement that we will use this for funding the strategic and socially justifiable projects. That requires some restructuring of IIFCL," a senior finance ministry official told PTI.

"Since this kind of investment is basically is in the ambit of economic affairs, therefore this proposal is there to transfer the IIFCL to the Department of Economic Affairs," the official said.

The proposal to this effect was made in the Budget 2018-19.

"My ministry will leverage the India Infrastructure Finance Corporation Limited (IIFCL) to help finance major infrastructure projects, including investments in educational and health infrastructure, on strategic and larger societal benefit considerations," Finance Minister Arun Jaitley had said in the Budget speech.

Besides, the finance ministry has made a Budget proposal of Rs 100 crore capital infusion during the current fiscal, keeping in view the business programme and capital requirement.

IIFCL, a wholly-owned Government of India company, was set up in 2006 to provide long-term finance to viable infrastructure projects through a special purpose vehicle.

The sectors eligible for financial assistance from IIFCL are as per the harmonised list of infrastructure sub-sectors as approved by the government and as amended from time to time. These broadly include transportation, energy, water, sanitation, communication, social and commercial infrastructure as per the government mandate.

IIFCL has been registered as a NBFC-ND-IFC with RBI since September 2013.

The authorised and paid up capital of the company as on March 31, 2017 stood at Rs 6,000 crore and Rs 4,002 crore, respectively.

On a standalone basis, till March 31, 2017, IIFCL made cumulative gross sanctions of Rs 77,431 crore to 442 projects under direct lending and cumulative disbursements of Rs 55,966 crore. This include disbursements of Rs 6,256 crore under refinance and Rs 14,856 crore under Takeout Finance.