IIFCL’s role to be expanded

September 13th, 2011 - 9:37 pm ICT by IANS  

New Delhi, Sep 13 (IANS) The role of India Infrastructure Finance Company Ltd (IIFCL) will be expanded in terms of take-out financing and credit enhancement to help attract $1 trillion investments in infrastructure sector in the next five year plan (2012-13 to 2016-17), a finance ministry official said Tuesday.

“Realising the need for sustained push to infrastructure growth, the government is contemplating expanding the role of IIFCL in terms of take-out financing and credit enhancement,” said Economic Affairs Secretary R. Gopalan.

Addressing a conference organised here by the Confederation of Indian Industry (CII), Gopalan said the government would need to liberalise regulations to attract the targetted $500 billion private investment in infrastructure sector during the 12th Five Year Plan that begins April 1, 2012.

IIFCL was set up in 2006 as a wholly owned government-owned entity to help raise finance for infrastructure projects.

Gopalan said strengthening of public-private-partnership mechanism for infrastructure development was also one of the focus areas of the government.

“The government has already provided the necessary impetus by making the documentation process and definitions simpler and more transparent,” he said.

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