IIFCL to double funding of infra projects to Rs 6,000 cr
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Last Updated: Sunday, August 09, 2009, 16:00
New Delhi: State-owned infrastructure funding company IIFCL is aiming to double disbursement of funds for projects, particularly in highways and power sectors, to Rs 6,000 crore during the current fiscal.

"We are aiming to disburse around Rs 6,000 in the current fiscal against Rs 3,200 crore in the previous fiscal," Indian Infrastructure Finance Company (IIFCL) Chairman and Managing Director S S Kohli said.

The company, he added, has already disbursed Rs 1,080 crore during the first quarter (April-July) for five major projects in power and road sectors.

Established in 2006, IIFCL has been playing key role to battle economic slowdown by promoting development of infrastructure and was identified by the government to raise large amounts through tax-free bonds to fund projects with long gestation periods.

Besides providing Rs 6,000 crore to projects through normal operations, Kohli said, the company would also disburse an additional Rs 10,000 crore, which was raised at the behest of the government to provide stimulus to the economy.

As part of stimulus package to battle global financial meltdown, the government had allowed IIFCL to raise Rs 10,000 crore by March 2009 to support projects in the infrastructure sector.

To fund its credit expansion plan, IIFCL is planning to raise up to Rs 5,000 crore from taxable bonds.

The company, Kohli said, has already raised Rs 2,000 crore from the market during the current fiscal.

The funds would be raised for financing infrastructure sector projects across the sectors, he said, adding "we are talking to different companies and are waiting for financial closures".

The company, which was incorporated by the government in 2006 to fund infrastructure sector projects, has disbursed Rs 4,800 crore for 77 projects till March 2009.

As far as sanctions are concerned, Kohli said, the company approved funding of 29 projects in sectors like roads, power, port and urban infrastructure.

IIFCL has so far sanctioned Rs 18,714 crore to 108 infrastructure projects.

Bureau Report

First Published: Sunday, August 09, 2009, 16:00

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