Government gives another Rs. 10 bn to IIFCL

August 14th, 2008 - 5:25 pm ICT by IANS  

A file-photo of Manmohan Singh

New Delhi, Aug 14 (IANS) The government Thursday doubled to Rs.20 billion the authorised share capital of the state-owned India Infrastructure Finance Company Ltd (IIFCL), which plays the key role in financing and developing infrastructure projects in the country. The decision was taken at the cabinet meeting chaired by Prime Minister Manmohan Singh.

“The increased authorised share capital will enhance the leveraging ability of IIFCL and will enable the company to build a strong resource base along with higher net worth over a period of time,” Information and Broadcasting Minister Priya Ranjan Dasmunsi told reporters.

IIFCL was Jan 5, 2006 incorporated under the Companies Act, 1956 as a wholly government-owned company.

With an increased authorized capital of Rs.2,000 crore or Rs. 20 billion, the company’s paid up capital goes up to Rs.600 crore or Rs.6 billion.

IIFCL renders financial assistance through direct lending to eligible projects, refinance to banks and financial institutions (FIs) for loans with tenor of five years or more.

The company, with a subsidiary in London to raise funds to finance the infrastructure sector in India, is in the process of setting up another subsidiary in Singapore to use a portion of India’s foreign exchange reserves to finance infrastructure projects.

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