IIFC executes agreement with IL
New Delhi, Oct 28 (UNI) In an attempt to originate and mobilise resources for infrastructure projects on a public private partnership (PPP) basis, India Infrastructure Finance Company of India Ltd (IIFC) executed an agreement with Infrastructure Leasing and Financial Services Ltd (IL and FS).
The agreement signed yesterday constitutes one more step taken by the IIFC to augment the institutional capacity for the accelerated development, implementation and financing of the infrastructure projects.
The IIFC expects to support other institutions on a similar basis as part of its on-going efforts to develop the necessary institutional capacities to develop the country's infrastructure.
The IIFC was established in Januaary 2006 as a wholly owned subsidiary of the government of India to act as the apex financing institution for the infrastructure sector.
Since its inception, IIFC has sanctioned over Rs 5000 crore of debt funding to the infrastructure sector either directly to infrastructure projects or through innovative financing arrangements to support the participation of banks and financial institutions in infrastructure projects.
The sector currrently being actively supported by the IIFC includes power, ports, airports, urban infrastrucutre, water and tourism.
In all cases the focus is on leveraging budgetary resources and in supporting banks and financing institutions to participate in such projects in the power sector.
For instance IIFC has enabled the debt funding in 400 MW of power projects currently being developed by a number of state governments and IL and FS by leading a consortium of banks and financial institutions to participate in this efforts through an innovative financial arrangements.
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