The government is planning an over Rs 50,000 crore infrastructure debt fund (IDF) with participation from a foreign bank, a multilateral agency, and state-owned financial institutions.
India Infrastructure Finance Company (IIFCL), Life Insurance Corporation of India and IDBI Bank along with Asian Development Bank and HSBC are joining hands to set up a non-banking finance company (NBFC) that will manage the fund.
The initial corpus of the fund will be $1 billion (over Rs 5,000 crore) with 50 per cent coming from the three state-run agencies, and HSBC and ADB contributing the rest. A request to get ADB to pitch in has been sent to the finance ministry. Sources indicated that the day-to-day operations of NBFC will be with HSBC as there was a view that private players were better equipped to handle the fund.
Leave a Reply
You must be logged in to post a comment.