India Infrastructure Finance Company Limited
GS 3: Indian Economy | Planning, mobilization of resources, growth, development and employment
Why in News?
- The Asian Development Bank (ADB) and the Government of India signed here in national capital a $300 million Loan Agreement to support lending by India Infrastructure Finance Company Limited (IIFCL).
- The loan will enhance availability of long-term finance for PPP projects, improve operational capacity of IIFCL.
- It will expand portfolio of infrastructure financing instruments available to IIFCL.
- It is expected to compliment Government’s infrastructure building efforts.
- ADB funding is expected to fund at least 13 sub-projects through IIFCL, involving roads and renewable power generation, under the last tranche. It expected to help catalyze the financial closing of $2.4 billion in investments. In addition, attached technical assistance will support IIFCL capacity development and will focus on IIFCL’s financial management and social and environmental safeguards.
- It will support renewed effort of Central Government in accelerating infrastructure growth through increased Private Sector investment.
- The Project undertaken it will be relevant and responsive to constraints to bank based infrastructure financing, fiscal space creation, and repercussions on GDP growth.
India Infrastructure Finance Company Limited:
- IIFCL is a wholly-owned Government of India company set up in 2006.
- It has been registered as a NBFC-ND-IFC with RBI since September 2013.
- It provides long term finance to viable infrastructure projects – Both Greenfield and Brownfield projects.
- It provides refinance to banks and other eligible financial institutions for their loans to infrastructure projects.
- The sectors eligible for financial assistance from IIFCL are as per the harmonized list of Infrastructure Sub-Sectors as approved by the Government and RBI.
- It broadly includes transportation, energy, water, sanitation,communication, social and commercial infrastructure.
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