India Infrastructure Finance Company Ltd (IIFCL) was incorporated under the Companies Act as a wholly-owned Government of India company in 2006 to provide long term finance to viable infrastructure projects through the Scheme for Financing Viable Infrastructure Projects through a Special Purpose Vehicle called India Infrastructure Finance Company Ltd (IIFCL), broadly referred to as SIFTI. Since September 2013, IIFCL has been registered with the Reserve Bank of India as a Non-Banking Financial Company – Infrastructure Finance Company (NBFC-IFC). The sectors eligible for financial assistance from IIFCL are roads and highways, power, airport, port, urban infrastructure, cold storage, warehousing, fertilizer manufacturing etc. IIFCL accords overriding priority to Public-Private Partnership (PPP) Projects. The authorised & paid up capital of the company as on 30th December 2013 was Rs 5,000 crore and Rs 3,300 crores respectively. IIFCL’s current offerings include direct lending, refinance, takeout finance and credit enhancement (pilot basis).
IIFCL has established its wholly owned subsidiary at London (IIFC(UK) Ltd) with the objective of lending in foreign currency to Indian companies implementing infrastructure projects in the country for the purpose of providing financial assistance specifically for import of capital equipments by infrastructure projects in India. Reserve Bank of India has extended facility of USD 5 billion from foreign exchange reserves for the same.
Other subsidiaries of IIFCL include IIFCL Projects Ltd to provide advisory services and IIFCL Asset Management Company Limited (IAMCL) for the purpose of the management of the assets of it IIFCL Mutual Fund (IDF). IIFCL Mutual Fund has been started as a specialized Infrastructure Debt Fund under the mutual fund route.