IIFCL may get Rs 5K cr in Budget

NEW DELHI: The government is likely to infuse Rs 5,000 crore into India Infrastructure Finance Company Ltd in the upcoming Budget to boost investment in the infrastructure sector and accelerate revival of the COVID-19 hit economy, according to sources.

As per the Budget document, the government had earmarked Rs 10,000 crore as capital support to IIFCL for 2020-21. In the previous financial year, the company received capital infusion of Rs 5,300 crore through recapitalisation bonds.

Subsequently, the government approved increasing the authorised capital of IIFCL from Rs 6,000 crore to Rs 25,000 crore to create requisite headroom for borrowing thus enabling the company to finance big-ticket infrastructure projects in line with the government's target.

The government has infused capital in the company in the past and it is expected that the infusion will be more than Rs 5,000 crore for the next financial year as there is a huge requirement for infrastructure funding, the sources said.

The sources, however, said the exact quantum will be decided based on various considerations, including setting up of Development Finance Institution. IIFCL was set up in 2006 for providing longterm finance to viable infrastructure projects.