IIFCL operational control may move to economic affairs dept
New Delhi: The finance ministry has mooted a proposal to transfer operational control of India Infrastructure Finance Corporation Limited (IIFCL) to Department of Economic Affairs as its nature of funding has changed.
Currently, IIFCL is under administrative control of Department of Financial Services, which also controls public sector banks and financial institutions.
"There is a Cabinet announcement that we will use this for funding the strategic and socially justifiable projects. That requires some restructuring of IIFCL," a senior finance ministry official said.
"Since this kind of investment is basically is in the ambit of economic affairs, therefore this proposal is there to transfer the IIFCL to the Department of Economic Affairs," the official said.
The proposal to this effect was made in the Budget 2018-19.
"My ministry will leverage the India Infrastructure Finance Corporation Limited (IIFCL) to help finance major infrastructure projects, including investments in educational and health infrastructure, on strategic and larger societal benefit considerations," Finance Minister Arun Jaitley had said in the Budget speech.
Besides, the finance ministry has made a Budget proposal of Rs 100 crore capital infusion during the current fiscal, keeping in view the business programme and capital requirement.
IIFCL, a wholly-owned Government of India company, was set up in 2006 to provide long-term finance to viable infrastructure projects through a special purpose vehicle.
The sectors eligible for financial assistance from IIFCL are as per the harmonised list of infrastructure sub-sectors as approved by the government and as amended from time to time. These broadly include transportation, energy, water, sanitation, communication, social and commercial infrastructure as per the government mandate.