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IIFCL plans to disburse Rs 30,000 cr in infra projects this year

Posted on Dec 27, 10:38AM | UNI

India Infrastructure Finance Company Limited(IIFCL), the country's largest government owned infrastructure finance company, plans to disburse Rs 30,000 crore to various projects this fiscal registering over 80 per cent growth from last year.

Stating this IIFCL Chairman and Managing Director S K Goel here today said during the first nine months of the current financial year(2012-13), a total amount of Rs 26,900 crore had already been disbursed among 180 centrally sponsored infrastructural projects across the country covering diversified sectors like power, roads,highways,airports,ports,oil and natural gas and renewable energy.

Speaking to reporters on the sidelines of a programme to announce IIFCL's decision to issue tax free bonds of ten 15 and 20 years duration of Rs 1500 crore with Green Shoe Option of upto Rs 9215 crore on first come first serve basis from today, Mr Goel said while the maximum amount was lend to the power and road sectors, they were followed by the construction of new airports(of New Delhi and Mumbai), sea ports and the renewable energy sectors.

At least two major hydro-electric projects in Assam and Arunachal Pradesh were being financed by IIFCL, totalling more than Rs 800 crore, Mr Goel said replying to a query.

Asked about the performance of IFFCL's two recent wholly-owned subsidiaries called IIFC(UK)having headquarters in London, and IIFCL Projects Limited(IPL), Mr Goel said as the former subsidary was formed(in 2008) with the sole objective of providing foreign curreny credit to Indian infrastructure companies and with an intitial corpus of five billion USD, it had been functioning excedingly well.

During the first four years of its existance it had disbursed a total amount of 1.2 billion USD among various Indian companies and planned to spend the remaining corpus during the next two to three years time with more investments coming from the Reserve Bank of India to encourage more infra-related projects.

Similarly, the performance of IPL, which was formed only in February this year,was equally well as it had been providing top class consultancy services involving the preparation of feasibility reports, project structuring and financial plans to various companies across the country.

At least six of these projects were situatuted in Eastern and North-eastern parts of the country, said Mr Goel and hoped that many more would follow soon.

On the basis of such consistent performances the Profit margin of IIFCL had recorded an unprecedented 120 per cent jump during the first nine months of the current fiscal to Rs 580 crore, while during the whole of last year it was to the tune of Rs 678 crore, he said.

Referring to the future projections of the proposed bonds which in all likelyhood be over-subscribed like the previous issues,Mr Goel said this time at least 40 per cent of these Bonds had been kept reserved for retail individual investors only.

With minimum application of Rs 5,000 with the face value of Rs 1,000 per bond, they would attract interest rates of 7.69 per cernt for ten year period, 7.86 per cent for the 15 year period and as high as 7.90 per cent for the 20 year duration.