Cabinet approves proposal for providing more equity support to IIFCL

The Cabinet has also approved for increasing the authorized capital of IIFCL from Rs. 6,000 crore to Rs. 25,000 crore.

The Union Cabinet chaired by Prime Minister Narendra Modi has approved the proposal for providing additional equity support to IIFCL to the tune of Rs. 5,300 crore in the financial year 2019-20 and Rs. 10,000 crore in the financial year 2020-21. This will be done through regular Budgetary support and/or through the issuance of recapitalization bonds. The timing, terms, and conditions will be decided by the Department of Economic Affairs. The Cabinet has also approved for increasing the authorized capital of IIFCL from Rs. 6,000 crore to Rs. 25,000 crore.

Major Impact:

This will enable IIFCL to create requisite headroom for borrowing, thus enabling it to finance big-ticket infrastructure projects in line with the Government of India's target to invest Rs. 100 lakh crore in the infrastructure sector over the next five years.

(With Inputs from PIB)