Ifci Steps Up Power Sanctions In Q4
The Industrial Finance Corporation of India Ltd (IFCI) approved loans worth Rs 500 crore to four power projects in the last quarter of the current fiscal as sanctions by the institution moved into top gear after near stagnant growth during the first three quarters. IFCI hopes to sanction up to Rs 1,000 crore to the power sector before the year ends.
An IFCI official said the FI has sanctioned funds to Jaiprakash Hydro project in Madhya Pradesh (Rs 150 crore); Maheshwar Hydro in Himachal Pradesh (Rs 150 crore); Global Boards Ltd in Madhya Pradesh (Rs 200 crore) and PPN Power (Rs 100 crore). The loans have been extended for a period of nine to 11 years at a rate of 3.5 per cent over the prime lending rate, the official said.
The institution had earlier sanctioned Rs 200 crore to STI Power in Madhya Pradesh.
Sanctions during the first three quarters of the year were near stagnant as clearances for some of these projects like the Central Electricity Authority (CEA) nod came in only towards December. Hence the delay in sanctions, the official said.
IFCI, however, said it has recorded improved performance in loan approvals during fiscal 1997-98 compared to the previous year. During the nine months to December 1997, loan approvals aggregated Rs 7,586 crore, a rise of 56 per cent over an aggregate Rs 4,853 crore in the year before. IFCI hopes to touch Rs 10,000 crore in sanctions during the current fiscal.
The core sector accounts for the largest funds allocation by the FI 27.8 per cent of the total loan approvals. The power sector alone accounts for 18.5 per cent while telecom sector has received 7.9 per cent, ports and related facilities 1.4 per cent.
Other major areas that received loan approvals from IFCI include: Iron & Steel (18 per cent of the total loan approvals), textiles (6.7 per cent), synthetic resins (5.6 per cent) fertilisers (5.5 per cent), and electronics (4.8 per cent).
IFCIs actual loan disbursements in the nine months to December 1997 aggregated Rs 3,766 crore. The FI has fixed a disbursement target of Rs 6,000 crore for the year 1997-98.