Centre injects Rs 5,298 cr into IIFCL to boost infrastructure spending
IIFCL will now have increased exposure limits for individual projects
The Central government has infused a equity share capital of Rs 5,297.60 crore in the India Infrastructure Finance Company (IIFCL).
This infusion has increased the paid-up equity share capital of IIFCL to Rs 9,999.92 crore against the authorized share capital of Rs 10,000 crore.
The increased paid-up equity share capital enables IIFCL to create requisite headroom to provide finance to more number of infrastructure projects in the country.
IIFCL will now have increased exposure limits for individual projects and developer groups. It will be able to comfortably maintain its capital to Risk Adjusted Ratio (CRAR) as per RBI regulations and directions and approach the markets to attract more borrowings.
IIFCL, wholly owned by the government, provides long-term financial support to infrastructure projects in the country through direct lending, subordinate debt, takeout finance and refinance.