IL&FS Infra Asset Management (IAML), an Asset Management Company (AMC) signed a Memorandum of Understanding (MoU) with eight Public Sector Banks (PSBs) for acquisition of infrastructure loans.
IAML was promoted by IL&FS Financial Services (IFIN) to manage the IL&FS Infrastructure Debt Fund (IIDF).
The eight banks include Allahabad Bank, Bank of India, Canara Bank, Central Bank of India, Indian Bank, Indian Overseas Bank, Oriental Bank of Commerce and UCO Bank.
Speaking on the occasion, Arvind Mayaram, Secretary, Department of Economic Affairs said that the country needs about $1 trillion for infrastructure sector funding in next five years i.e. 2012-13 to 2016-17.
He said that out of that, 50 percent would be funded by the Government and remaining 50 percent by private sector and financial institutions.
He said that there is need for second generation reforms for infrastructure sector. Without infrastructure investment, it would be difficult to achieve the potential growth rate of 8 percent for the country, he added.
Ramesh Bawa, Managing Director and CEO, IFIN said the fund aims an initial corpus of approx $1 billion and hopes to increase the overall corpus to $5 billion under management in the medium term.
It may be noted that IIDF was launched by the Union Finance Minister P Chidambaram on February 9, 2013 in Mumbai.
Leave a Reply
You must be logged in to post a comment.