IL&FS looks to exit project financing: Report

Shareholders of Infrastructure Leasing & Financial Services Ltd (IL&FS) are considering a restructuring proposal to focus on the management and execution of infrastructure projects, and exit the financing of long-term projects, the Business Standard reported on Friday.

The report comes a day after the company`s IL&FS Financial Services Ltd unit said it missed repayments on a host of bank loans and some term deposits due this month.

Some of IL&FS` assets will also be put up for sale to pare its debt, the paper said.

IL&FS, which is executing large projects like the Zojila tunnel in northern India, is moving towards engineering, procurement and construction contracts, sources told the paper.

IL&FS is a major Indian infrastructure finance and construction company, which has built up big debts and is now facing a credit crunch. As a result, Indian authorities are trying to calm market fears that IL&FS` troubles could trigger a crisis in the wider non-banking financial sector.

IL&FS did not immediately respond to a Reuters request for comment.

India`s central bank is set to meet the large shareholders of IL&FS later on Friday, CNBC-TV18 reported on Thursday, citing sources familiar with the matter.

Top shareholders of IL&FS include India`s largest state-run insurer, Life Insurance Corporation (LIC), Japan`s Orix Corp, IL&FS Employees Welfare Trust and Abu Dhabi Investment Authority.