The Hindu Business Line : IIFCL loans to infra sector soar in 2008-09

New Delhi, July 5 Infrastructure financing company India Infrastructure Finance Company Ltd’s (IIFCL) loan disbursements to infrastructure sector have more than doubled in fiscal 2008-09 to Rs 3,197 crore. It was about Rs 1,541 crore in 2007-08.

Over 50 per cent of the disbursements in 2008-09 went to the power sector. In 2008-09, IIFCL’s loan disbursements to the power sector stood at about Rs 1,634 crore, higher than the level of about Rs 600 crore recorded in the previous fiscal, official sources said.

For the road sector, the quantum of disbursal stood at Rs 1,288 crore, more than double the Rs 584 crore achieved in previous year. However, credit to both ports and airports declined on a year-on-year basis.

While loan disbursements to airports in 2008-09 stood at Rs 218 crore, lower than Rs 298 crore in previous year, the port sector got credit to the tune of Rs 43 crore (Rs 59 crore).

According to the Reserve Bank of India, the growth in outstanding credit to infrastructure sector (by commercial banks and institutions) decelerated from 43.1 per cent in 2007-08 to 31.6 per cent in 2008-09. Infrastructure credit growth has decelerated after October 2008, reflecting the slowdown in the economy.

In the stimulus package announced by Government last fiscal, IIFCL was allowed to raise Rs 10,000 crore by way of tax free bonds for refinancing bank lending of PPP projects of about Rs 25,000 crore. State-owned IIFCL raised Rs10,000 crore through tax-free bonds in two tranches in 2008-09.

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