Government to infuse Rs 10 billion equity in IIFCL

The government is set to infuse Rs 8 billion-Rs 10 billion equity into India Infrastructure Finance Company Limited (IIFCL) to bolster its lending capability. The recent churn in the financial sector has seen private players such as ICICI Bank and Axis Bank shun the term loan business, while even public sector players, including SBI, are reluctant to lend to infrastructure projects. The capital boost is planned at a time when the centre is looking to spur investments as part of its plan to accelerate economic growth. IIFCL is, however, unlikely to be tasked with the mandate to provide credit enhancement to infrastructure projects.