IIFCL to double funding of infra projects to Rs 6,000 cr
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
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
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