New Delhi: The government has approved proposal for giving additional equity support to India Infrastructure Finance Company Ltd (IIFCL) to the extent of R. 5,300 crore in fiscal 2019-20 and Rs 10,000 crore in 2020-21.
The Union Cabinet today approved increase in the authorized capital of IIFCL from Rs 6,000 crore to Rs 25,000 crore.
The additional equity support will be provided to IIFCL through regular budgetary support. It may also be done through issuance of recapitalization bonds, the government said in a statement.
The timing and the conditions for providing additional equity support will be decided by the Department of Economic Affairs.
Then move is aimed at enabling IIFCL to create the required headroom for borrowing which will allow it to finance big infrastructure projects.
IIFCL’s authorised capital and paid up capital stands at Rs 6,000 crore and Rs 4,702.32 crore respectively.