IIFCL and IL

Mumbai, Apr 19 (UNI) State-owned India Infrastructure Finance Compnay (IIFCL) has tied-up with Infrastructure Leasing and Financial Services (IL&FS) to develop and finance 10,000 megawatt of power generation and transmission assets.

IIFCL provides long-term finance to infrastructure projects, while IL&FS is a leading financial institution promoted by State-owned financial institutions and banks, with the objective of developing projects in the infrastructure sector on a commercial basis.

The agreement between IIFCL and IL&FS, signed yesterday, envisages development and joint financing of projects in a public-private-partnership (PPP) format, the companies' release said today, adding that projects entailing investment of around Rs 24,000 crore have been identified in Tripura, Andhra Pradesh and Sikkim. These projects are - a gas-based power generation and transmission project in Tripura, a gas-based and coal-based power plant in Andhra Pradesh and hydro-electric power projects in Sikkim.

IL&FS said it is working on developing several projects in these three States and Uttranchal, for generation of around 6,400 MW, and added that more projects are in the pipeline in Rajasthan, Orissa and Jharkhand.

IL&FS said it would complete project development activities before selecting a private entity with the objective of reducing risks, whereas IIFCL would function as the lead institution for raising funds for projects at competitive rates.

This joint effort would increase project attractiveness for investors and may also lead to reduction in tariffs, the release said.

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