FinMin proposes DFI tag for IIFCL to support long term financial needs

The finance ministry has proposed giving the ‘development finance institution’ (DFI) tag to India Infrastructure Finance Company Limited (IIFCL) in a bid to support long-term financial needs of infrastructure projects.

“The department of financial services (DFS) has prepared a Cabinet note to give DFI status to IIFCL. The proposal being discussed will require the approval of Parliament as a Bill will be introduced to effect the change,” a finance ministry official said, requesting anonymity.

DFS Secretary Debasish Panda didn’t respond to queries from Business Standard.

IIFCL is a government-owned entity, which is registered as a non-deposit accepting loan company with the Reserve Bank of India. The firm, set up in 2006, is the only state-owned financial institution that lends to all the infrastructure sub-sectors.