A recent press report said that India Infrastructure Finance has planned to take over Rs 600 crore worth of loans from state-owned IDBI Bank, as part of a take-out finance pact between the two.
According to reports from the RBI website institution or bank financing the infrastructure projects will have an arrangement with any financial institution for transferring to the latter outstanding in respect of such financing in their books on a pre-determined basis.
Reports also said that the infrastructure project funding firm will also float a Rs 3,000 crore equity fund, and will raise Rs 5,000 crore infrastructure debt fund through the non-banking finance company route.
Earlier the government had come out with the structure of infrastructure debt funds, a long-term debt instrument that it had proposed in its budget for 2011/12 and aimed at meeting the funding needs of the country’s infrastructure sector.
The state-run company has sought the government’s approval to raise Rs 10,000 crore through tax-free bonds in the current financial year ending March 2012. The company has also planned to launch a Rs 1,000 crore retail infra bond by March-end.