IIFCL ties up for USD 2.4 bn WB, ADB loans

The multilateral lenders like the World Bank and Asian Development Bank have agreed to shortly extend USD 2.4 billion (around Rs. 12,000 crore) to the State-owned India Infrastructure Finance Company to fund various projects.

“We have finalised a loan of USD 1.2 billion from the World Bank, and USD 1.2 billion from the Asian Development Bank, out of which USD 360 million have been already availed of. These funds will be utilised mostly in roads, ports and power projects,” India Infrastructure Finance Company (IIFCL) Chairman S.S. Kohli told PTI here on Monday.

IIFCL had raised Rs. 6,600 crore from the domestic market in addition to the Rs. 10,000-crore mopped up in March 2009 through tax-free bonds, to fund various projects especially in the roads, ports and power sectors, said Kohli.

Established by the Government in 2006 to fund major infrastructure projects, IIFCL has been playing a key role in battling the slowdown by promoting infrastructure development across the country.

And as part of the stimulus packages last year, which saw public sector spending shooting up massively, the Government had asked IIFCL to raise Rs. 10,000 crore from the market through tax-free bonds in March 2009 to support various infrastructure projects.

Last fiscal, the company had disbursed Rs. 3,200 crore to various projects and had also doubled its target for 2009-10.

IIFCL has sanctioned Rs. 20,888 crore to as many as 95 projects valuing Rs. 1,68,026 crore till October 2009. These include 63 road, 23 power and six port projects.

Of the 95 projects, financial closure has been achieved in as many as 86 cases. Of the total, 75 projects fall under the public-private-partnership mode.

Among the States, Tamil Nadu, Gujarat, Maharashtra, Uttar Pradesh, Andhra Pradesh and Madhya Pradesh have the maximum number of projects financed by IIFCL.