Chidambaram: IDFs should try to mobilise resources
Posted on Feb 08 2014 | IBNS
Mumbai, Feb 8 : Union Finance Minister P. Chidambaram on Friday said that the Infrastructure Debt Funds (IDFs) should try to mobilise resources from insurance and pension sectors as these funds are available for long term horizon, here.
The Finance Minister was speaking here on Friday on the occasion of signing of the First Tripartite Agreement by India Infradebt Fund (IDF), an IDF promoted by ICICI Bank, Bank of Baroda, Citibank and LIC, with National Highways Authority of India (NHAI).
Chidambaram later handed the First Tripartite Agreement signed between India Infradebt Fund (IDF), Himalyan Expressway Limited and NHAI, for a project of strengthening of the existing carriageway spreading across states of Punjab, Haryana and Himachal Pradesh.
The Project is in the operational phase.
On this occasion, Montek Singh Ahluwalia, Deputy Chairman, Planning Commission was also present along with Arvind Mayaram, Secretary, Department of Economic Affairs; Chanda Kochhar, CEO, ICICI; R.P. Singh, Chairman, NHAI, S.S. Mundra, CMD, Bank of Baroda; Pramit Jhaveri, CEO, Citibank and S.K Roy, CMD, LIC.
This is one more step in operationslizing the IDF structure as conceived by the Ministry of Finance and is in line with commitment of government of India to attract funds for infrastructure development in the country.
India Infradebt Limited (IDF) is an IDF promoted by four promoters - ICICI Bank, Bank of Baroda, Citibank and LIC to provide long term financing solutions to develop infrastructure in India, with a capital of Rs. 300 crore.
With the signing of the tripartite agreement, the IDF will disburse its first loan under the IDF scheme. It also strengthens the confidence of domestic and overseas investors in Indian Infrastructure.
Earlier, Kochhar, CEO, ICICI said that tripartite agreement is an outcome of the partnership between two key Ministries - Finance and Road Transport and Highways.
Financing infrastructure is the national agenda and will require cooperation and partnership of all institutions and players.