Union Cabinet has approved the proposal for providing additional equity support to India Infrastructure Finance Company Limited (IIFCL) to the tune of Rs 5,300 crore in financial year 2019-20 and Rs 10,000 crore in financial year 2020-21.
This will be done through regular Budgetary support and /or through issuance of recapitalisation bonds, read a statement. The timing, terms and conditions will be decided by the Department of Economic Affairs. The Cabinet has also approved for increasing the authorised capital of IIFCL from Rs 6,000 crore to Rs 25,000 crore.
This will enable IIFCL to create requisite headroom for borrowing, thus enabling it to finance big ticket infrastructure projects in line with the Centre’s target to invest Rs 100 lakh crore in infrastructure sector over the next five years.
IIFCL is the principal entity which provides long term finance to viable infrastructure projects across sectors. It is a Non-Banking Financial Company-Infrastructure Finance Company (NBFC-IFC) registered with RBI since September, 2013.