IIFCL plans to invest Rs 4,000Cr in InvITs

iifcl investment

India Infrastructure Finance Company Ltd is looking to invest Rs 4,000 crore in Infrastructure Investment Trusts (InvITs) in the current year, subject to RBI’s permission, the company’s Managing Director P. R. Jaishankar stated. 

He also said the company is content with a capital adequacy ratio of 31 percent and would not need capital infusion from the government to finance business growth this year.

‘The company’s equity and reserves put together is about Rs 10,600 crore after the finalization of FY’21 results and there is a potential to do additional business of Rs 50,000 crore given this kind of net worth,’ he told PTI. 

He said the company wants to raise Rs 15,000 crore via the issuance of bonds from the domestic market in the current fiscal year. Concerning InvITs, he said that IIFCL would act more like a financier and it would be more logical to invest at the special purpose vehicle level.

‘We have requested RBI to clarify on our InvIT foray. If that clarification comes, we will be very keen to get into that segment. This will help improve our asset quality and at the same time help grow our balance sheet. We have planned about Rs 4,000 crore this year subject to approval from RBI,’ he added.

The company is entirely owned by the Union government and has also designed an Online Project Monitoring System (OPMS) for remote monitoring of its infrastructure projects. This is part of efforts to strengthen the monitoring and surveillance systems via digitalization.

IIFCL is setting up the OPMS, a first of its kind in the country, for real-time project monitoring during the construction stage by combining high-end solutions like drones and AI, Jaishankar said. 

He also said that IIFCL is in the process of establishing in-house research and advisory division. This would help it to further strengthen capabilities to offer policy advocacy, feedback, remedial action, innovative products, and processes to the government, regulatory bodies, project authorities, and other stakeholders. 

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