Kohli appointed infrastructure SPV chief

By Staff
|
Google Oneindia News

New Delhi, Mar 13 (UNI) Mr S S Kohli, former Chairman and Managing Director, Punjab National Bank has been appointed as Chairman and Managing Director of India Infrastructure Finance Company Ltd (IIFCL).

IIFCL was incorporated on January 5, 2006 with a paid-up capital of Rs10 crore and an authorised capital of Rs 1,000 crore.

''The setting up of India Infrastructure Finance Company Ltd as a wholly-owned Government company comes about as fulfillment of a promise made in the Budget Speech for 2005-2006 by Finance Minister'', an official statement said here today.

The IIFCL as a special purpose vehicle would lend funds, especially debt of longer term maturity, directly to the eligible projects to supplement other loans from banks and financial institutions. Government will communicate the borrowing limit to the SPV at the beginning of each fiscal year. For 2005-2006, the borrowing limit had been fixed at Rs.10,000 crore.

IIFCL would keep overheads to the minimum and thus keep the cost of funds for infrastructure at a competitive level. The company would fill the gap for long term infrastructure finance which the banks are not in a position to address owing to concerns relating to mismatches in assets and liabilities.

UNI PC SR RK1840

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