Mumbai:
Infrastructure
Development Finance Company Ltd (IDFC) has entered into a memorandum of understanding
(MoU) with India Infrastructure Finance Company Ltd (IIFCL) to combine their resources
and expertise to finance infrastructure projects. The
MoU would help both IDFC and IIFCL to co-operate in creating a pipeline of commercially
viable infrastructure projects and evolve fast track approval processes for co-financing.
IDFC would appraise projects and undertake necessary activities to facilitate
financial closure for projects, the company said in a filing with the Bombay Stock
Exchange (BSE). "The
joint effort of IDFC and IIFCL seeks to address the huge infrastructure financing
needs of the country. India needs to invest over $475 billion over the next five
years and a collaborative approach is essential to develop the right structures
to expedite financial closure of infrastructure projects. We look, forward to
working with IIFCL in financing eligible infrastructure projects and to complement
each others strengths, skills and expertise in expediting the investments in Indian,
infrastructure," Rajiv Lall, managing director and CEO of IDFC said. IDFC,
the largest infrastructure fund in India, has a corpus of Rs2,800 crore ($632
million) For
the quarter ended June 30, 2007, IDFC posted a profit after tax of Rs167.81 crore
as compared to Rs121.23 crore for the quarter ended June 30, 2006. Total income
has increased from Rs321.48 crore to Rs556.80 crore. The group reported consolidated
profit after tax of Rs180.98 crore for the quarter as compared to Rs131.15 crore
for the quarter ended June 30, 2006. Total Income has increased from Rs339.17
crore to Rs609.70 crore for the quarter ended June 30, 2007. IIFCL
was set up by the government to provide long-term debt for infrastructure projects.
IIFCL enters into tripartite agreements with the lead bank and co-lead bank for
projects where lead bank guarantee was not contemplated.
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