Evaluation Study of Equity Support to India Infrastructure Finance Company Limited

Evaluation Study of Equity Support to India Infrastructure Finance Company Limited

As an innovative vehicle, the India Infrastructure Finance Company Limited (IIFCL) was set up in 2006 as a non-banking finance company fully owned by the Government. IIFCL was allowed to raise funds from domestic and overseas markets on the strength of sovereign guarantees to keep borrowing costs low. Moreover, such borrowings did not have to meet the net worth and equity requirements as their repayment was backed by a sovereign guarantee.  The objectives of IIFCL are to provide long-term financial assistance to viable infrastructure projects (both greenfield and brownfield). It also provides innovative financing solutions to promote and develop world-class infrastructure institutions.

The major objectives of the evaluation study are

  • To record comprehensively the lessons from the IIFCL experience on areas like:

⇒ Developing innovative financial solutions for infrastructure financing;

⇒ Identifying viable projects (reducing the probability of NPAs in the future);

⇒ Increasing probability of financial closure; accelerating financial closure;

⇒ Re-structuring projects to make them viable;

⇒ Accountability, transparency and the risk management systems in place ; and

⇒ Improving professionalism and stakeholder satisfaction through case studies on selected beneficiary firms and projects and a comparative analysis on these parameters with at least one similarly placed DFI/NBFC

  • To identify the key bottlenecks/issues & challenges in the implementation of the different schemes’ of IIFCL
  • To have a comparative analysis of Banks, NBFCs and IIFCL providing funds to infrastructure projects in terms of cost of funding, financial closure of projects, return on investments, and among others, through a case study approach.
  • To evaluate the role played by Development Finance Institutions (DFIs) in providing funds to infrastructure sector in India
  • To identify the infrastructure financing universe–structures and institutions– in India and their contributions in infrastructure financing and to compare the resultant aggregates with the requirements spelt out in the National infrastructure Pipeline.
  • In the light of the gaps identified, study the purpose and the role envisaged for the National Bank for Financing Infrastructure and Development (NBFID) and its institutional structure.

Researchers

  • 429Evaluation Study of Equity Support to India Infrastructure Finance Company Limited

    Bornali Bhandari is a Professor at NCAER with a background in international economics and macroeconomics, specifically focusing on the impact of globalisation on development. Currently, she is engaged in a number of industry studies including automobiles, farm mechanisation, and digitisation. Her wider research interests include analysis of skilling from a 3-E perspective (education, employability and...   Read More

  • 2165Evaluation Study of Equity Support to India Infrastructure Finance Company Limited

    Ajaya Kumar Sahu is an Associate Fellow at NCAER. He is an Agricultural Economist by training. During his stay at the NCAER, he has worked on areas like poverty analysis, issues related to agriculture and rural development, labour and employment with special reference to quality of jobs and skills, public finance and analysis of price dynamics. ...   Read More

  • 2254Evaluation Study of Equity Support to India Infrastructure Finance Company Limited

    Nishika Pal is working as a Research Associate at NCAER. She qualified for the UGC NET examination in Economics in 2019. She has an MSc in Financial Economics from the Gokhale Institute of Politics and Economics, and a BA (Honours) in Economics from Shaheed Bhagat Singh College, University of Delhi. She contributed in index computation...   Read More

  • 17893Evaluation Study of Equity Support to India Infrastructure Finance Company Limited

    Aditya Gupta has a Bachelors in Economics from the Delhi College of Arts and Commerce, and a Masters in Economics from the Delhi School of Economics, University of Delhi. His research interest pertains to macroeconomic indicators like the exchange rate, inflation, and balance of payments.

  • 18929Evaluation Study of Equity Support to India Infrastructure Finance Company Limited

    Karan Raj is working at NCAER as a Research Associate. His primary research interest is in micro-econometrics. He has a Bachelor’s degree in Economics from Christ (Deemed to be University) and Master’s degree from University of Warwick.