Idfc Sets Rs 2,000crore Sanctions Target

The Infrastructure Development Finance Company Ltd has sanctioned loans aggregating Rs 680 crore for four power ventures and one port project.

IDFC has also targeted sanctions of Rs 2,000 crore and disbursals of Rs 1,000 crore during the current financial year, its first full year of operations.

``We have sanctioned funds for projects by Jindal Tractabel, PPM Power, Reliance Power's projects in Jamnagar and Hazira, Bina Power,'' IDFC managing director D J Balaji Rao announced here after the first annual general meeting of the company.

The RBI and the government have advanced a subordinated debt of Rs 650 crore to IDFC taking its capital to Rs 1650 crore. ``IDFC has not leveraged its equity base yet. We will be entering the domestic debt market for funds within the next two months,'' deputy managing director Nasser Munjee announced.

 

IDFC plans to tap insurance companies and also access the partial opening up of Provident Fund accounts for wholesale debt with a long-term tenure.

IDFC has already been approached from companies seeking substitution of forex resources with rupee debt. ``Infrastructure development in the country will need a total of $40 to $50 billion over the next five years. The current inflow is only about $17-18 billion. The balance has to come from private domestic sources,'' Munjee said.

``Rather than go in for full-fledged funding of infrastructure projects, IDFC will position itself to lead private capital into such projects.''

IDFC also plans to play an active role in the development of the long term debt market.