Source: PRS India
The Union Cabinet has approved additional capital infusion and equity support to India Infrastructure Finance Company Limited (IIFCL).
- The additional equity support for the financial years 2019-20 and 2020-21 would be Rs 5,300 crore and Rs 10,000 crore respectively. This support will come either from budgetary support or the issuance of recapitalization bonds.
- Further, the authorized capital of IIFCL is also proposed to be increased from Rs 6,000 crore to Rs 25,000 crore. The authorized capital is the maximum amount of shares that a company can issue as per its incorporation documents
About India Infrastructure Finance Company Limited (IIFCL)
- IIFCL is a wholly-owned Government of India company set up in 2006 to provide long term finance to viable infrastructure projects through the Scheme for Financing Viable Infrastructure Projects through a Special Purpose Vehicle called India Infrastructure Finance Company Ltd (IIFCL), broadly referred to as SIFTI.
- 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 and as amended from time to time. These broadly include transportation, energy, water, sanitation, communication, social and commercial infrastructure.
- IIFCL is a non-banking financial company that provides long-term finance to viable infrastructure projects.
- IIFCL has been registered as an NBFC-ND-IFC with RBI since September 2013.