Banks can avail of Rs 10,000 crore: IIFCL

The India Infrastructure Finance Company (IIFCL), which raised Rs 10,000 crore (Rs 100 billion) in the last fiscal for refinancing banks for infrastructure lending, on Tuesday said the banks may avail of this facility in the next seven months.

"Hopefully the first tranche of Rs 10,000 crore (raised by IIFCL) should be availed by banks in the next six-seven months," IIFCL chairman S S Kohli said.

The government has allowed IIFCL to raise Rs 30,000 crore (Rs 300 billion) during the current fiscal for refinancing infrastructure projects like roads, highways and ports.

On asked if IIFCL would disburse Rs 30,000 crore in the next 5 to 6 months, Kohli said, "Actually that will depend on in how many cases the bid has been accepted... let us see the progress in the bidding of the projects and then we can come out with certain conclusions."

Kohli said that the institution would meet banks "to evolve this scheme" and the board meeting will take place on July 14 to discuss its modalities.

The government said IIFCL and banks are equipped to support projects involving investment of Rs 1,00,000 crore (Rs 1 trillion) in infrastructure. 

"Investment in infrastructure for the growth of the economy is critical…IIFCL and banks are now in a position to support projects involving a total investment of Rs 100,000 crore in infrastructure.

Combined with the steps we are taking to increase public investment in infrastructure, this will provide a big boost to such investment," Finance Minister Pranab Mukherjee said presenting the Budget.

IIFCL has sanctioned 86 projects, of which 70 are under public-private partnership. Last year, it disbursed about Rs 3,200 crore (Rs 32 billion) and it targets to increase it to Rs 6,000 crore (Rs 60 billion) this year. In the last three months, IIFCL has disbursed about Rs 800 crore (Rs 8 billion).