IIFCL doubling lending to Rs. 25,000cr

India Infrastructure Finance Company Limited (IIFCL), which provides loans on long term basis to finance infrastructure projects, is all set to achieve its disbursement target of Rs. 20,000 crore by the end of the coming fiscal and Rs. 25,000 crore in the next three years.

As per Budget proposals the lion’s share of total plan outlay of Rs. 3, 73,000 crore for 2010-2011 has been allocated for infrastructure sectors covering highways, power, railways, ports and airports. Over Rs. 1,73,552 crore of which has been set aside for infrastructure development for the fiscal and that the proportion was about 30 per cent in the preceding year. Similarly, allocations for roads and railways combine are over Rs. 36, 600 crore which is an increase of Rs. 3,300 crore. Apart from this Government has also proposed changes in the policy framework for Public Private Partnerships (PPP) to make a visible impact in the road sector by targeting building of national highways at the pace of 20 km a day and 7000 kms in a year. The take out financing scheme of IIFCL under which the banks sell their loan book to the company will cover all infrastructure sectors including national highways and Indian railways.