IIFCL-JICA inks Rs. 2,866cr infra pact

Ensuring smooth flow of funds to finance various infra projects across the country, India Infrastructure Finance Company Limited (IIFCL) in a recent move has inked pact with JICA involving Japanese 50 billion yen amounting to Rs. 2,866-cr assistance for the implementation of infrastructure projects on PPP model.

The Official Development Assistance (ODA) functioning as the principal for the implementation of Public-Private Partnership (PPP) Infrastructure Financing Project, JICA said in a statement, adding that the ODA loan conditions are concessional, i.e; the repayment period is fourteen years after a grace period of six years, and the rate of interest is floating rate of the London interbank offered rate for six month deposits in Japanese yen.

The pact in question was signed between Takema Sakamoto, chief representative of JICA India and Sanjeev Ghai, Chief General Manager of IIFCL for promoting PPP-based infrastructure development mainly in the field of non-fossil power projects by providing long term finance to private/public enterprises and the banks/public financial institutions to lend to private/public enterprises for investment to viable infrastructure projects, the statement added.