Prepared to handle any responsibility given by govt: IIFCL MD
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The Union Budget 2021-22 presented in Parliament earlier this month proposed to set up a Development Finance Institution (DFI) with an initial capital of Rs 20,000 crore to fund the Rs 111 lakh crore ambitious National Infrastructure Pipeline (NIP).
Amid the proposed formation of DFI, India Infrastructure Finance Company Limited managing director PR Jaishankar has said the company is prepared to handle any responsibility given by the government.
The Union Budget 2021-22 presented in Parliament earlier this month proposed to set up a Development Finance Institution (DFI) with an initial capital of Rs 20,000 crore to fund the Rs 111 lakh crore ambitious National Infrastructure Pipeline (NIP).
National Bank for Financing Infrastructure and Development (NaBFID), the proposed DFI, expected to anchor the very ambitious NIP.
"IIFCL has been playing its role as a policy institution and financial institution of the Government of India for financing infrastructure development. The Budget has laid down a solid foundation for taking the infrastructure to the next scale.
As far as infrastructure financing is concerned, he said, "IIFCL has been working in a manner that development finance requirements were met in a more focussed manner. So, that has been already there".
India Infrastructure Finance Company Limited (IIFCL), with a paid-up capital of Rs 10,000 crore, has sanctioned the loan of around Rs 1.5 lakh crore as of January 2021 to more than 620 projects with a total outlay of Rs 10.8 lakh crore.
When asked about its role as part of a new organisation, he said, "It matters how the government looks at it. We are geared up and prepared to handle any such responsibility that the government would give to IIFCL".
The government is considering a proposal to subsume IIFCL into the proposed DFI.
"IIFCL may be considered for a quick start if it could be subsumed in this new financial institution because they already have some domain expertise and they have some manpower who are already trained and experienced in this field," Financial Services Secretary Debasish Panda had said.
Set up in 2006, IIFCL is a leading financial institution in the infrastructure sector and developed several innovative financial solutions, including takeout finance, subordinated debt and credit enhancement.
