India Infrastructure Finance Company Ltd (IIFCL) may set an ambitious goal of extending Rs 1 lakh crore loans to the infrastructure sector in the next three years, financial services secretary M Nagaraju on Monday said.
So far, IIFCL has sanctioned loans worth Rs 2.8 lakh crore and disbursement to the tune of Rs 1.4 lakh crore of which 50% of this has happened in the last 4-5 years, Nagaraju said.
“Next three years you (IIFCL) should lend Rs 1 lakh crore…to fulfil the Vikshit Bharat aspiration. You have the capacity, experience and resilience to undertake very complex products and finance the infrastructure in the country,” he said speaking at the 20th foundation day of the institution.
He asked financial institutions including IIFCL to move away from secure products or completed projects to undertake new or greenfield projects so that fresh asset creation is given a push.
Lenders should also focus on creating world-class infra projects, he said, adding, that innovative products for financing can be looked at. He underlined the need to focus on risk management and guard against fraud.
There is also a need for pooling of resources by NBFCs and banks so that they can finance large projects, he added.
Speaking at the event, financial services additional secretary M P Tangirala said Indian financial institutions, including banks, are in a stronger position than ever.
IIFCL plans to borrow about Rs 8,000 crore, including from overseas institutions, during the January-March quarter, its managing director PR Jaishankar said.
The infrastructure financing institution plans to raise $200 million through external commercial borrowing during this quarter, Jaishankar said.
Besides, he said, the company has finalised blended finance of $600 million with the Asian Development Bank and Korean Exim Bank to expand its investor base and lower the borrowing cost.