Finance Minister P. Chidambaram launched IL&FS Financial Services Ltd’s Infrastructure Debt Fund (IDF) on Saturday.

The IL&FS Infrastructure Debt Fund (IIDF) would be a listed infrastructure mutual fund and will invest in infrastructure projects.

It will be a close-ended scheme with maturity of not less than five years and not more than 15 years.

Life Insurance Corporation of India and IL&FS will be the co-investors in the fund. Hong Kong-based, Hamon Investment Group will be the international investor in the fund and has agreed to bring in $100 million.

IL&FS has identified two projects to invest the money in.

One is a hydroelectric project and the other is financing equipment for a steel plant, the finance minister informed.

6 MORE PLAYERS IN QUEUE

There are six others players who have expressed interest in setting up an IDF, Chidambaram said.

“The regulator (SEBI) is considering the applications and has sought information from the players. As soon they provide information, I hope they will be registered either under the category of mutual fund or under the category of NBFC,” the finance minister added.

Currently, there are four IDFs operating in India, including IL&FS and IIFCL. ICICI has also launched an IDF under the non-bank finance company category.

satyanarayan.iyer@thehindu.co.in

(This article was published on February 9, 2013)
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