According to reports, India Infrastructure Finance Company Limited is awaiting final nod to launch Credit Enhancement Scheme next month.
It is also seeking to play a bigger role in lending to the country’s renewable energy sector.
Harsh Kumar Bhanwala, Executive Director of IIFCL, said that the Government-promoted corporation focussing on lending to infra-sector has requested the Finance Minister and hopes to secure nod to go ahead with the scheme launch next month. This will be designed to suit the requirement of infrastructure Companies.
Addressing newspersons to announce the launch of their tax-free bond offer, he said that the infrastructure sector needs a much diversified portfolio of services needing some specific schemes such as, Credit Enhancement Scheme, debt funding and Take Out Finance.
Under the Take Out Finance, IIFCL has already sanctioned over Rs 6500 crore. IIFCL has thus far sanctioned Rs 25,000 crore and expects to cross the Rs 30,000 mark soon.
He said that the country’s renewable sector is poised for raid growth and there is need to offer funding for entrepreneurs setting up new projects in the solar and wind power sector.
IIFCl has a $ 50 million arrangement with German lending agency KFW whose mandate is to focus only on renewable energy sector. Apart from this, we will also look at additional funding to offer to the solar energy sector. Most of the developers are in the process of finalising plans for setting up projects under the national solar mission.
The country’s infrastructure segment will need big funding and also need products that suit different requirements both in India and abroad, the latter when they buy equipment. Therefore, through the IIFCL arm based in UK, we have been funding companies to acquire equipment, he said.
The corporation is set to complete the $1 billion debt portfolio by March. This was managed through funding from ADB. “We are looking at another round of credit line from ADB. This will be part of the $10 billion which the Centre is seeking from the bank,” he said.