Business Standard reports that, the government is targeting an investment of Rs 1,00,000 crore in the infrastructure sector within the next two years for a grand stimulus gathers steam. To bankroll the plan, the government may ask Infrastructure Investment Finance Company Ltd (IIFCL) to put together a corpus of over Rs 40,000 crore.
Most infrastructure projects are financed three parts by debt and one part by equity. In case the promoter is unable to put together the entire equity capital, IIFCL will offer quasi equity of up to 10 per cent of the project cost. This will bring down the private promoter’s contribution down from 25 per cent to 15 per cent. Apart from quasi equity, IIFCL will refinance up to 60 per cent the banks which lend to such projects.
Courtesy:
Business Standard
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