Cabinet Approves Rs 5,300 Crore Capital Infusion Into India Infrastructure Finance Company
The Union Cabinet on Wednesday approved infusing additional Rs 5,300 crore capital into India Infrastructure Finance Company Ltd. through recapitalisation bonds in the current fiscal year.
Another Rs 10,000 crore will be infused in 2020-21.
"This will be done through regular budgetary support and/or through issuance of recapitalisation bonds," an official statement said.
The timing, terms and conditions will be decided by the Department of Economic Affairs.
The cabinet has also approved 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 government's target to invest Rs 100 lakh crore in infrastructure sector over the next five years," the statement added.
IIFCL was set up in 2006 for providing long-term finance to viable infrastructure projects across sectors.