Lok Sabha Question No. 1662 (UNSTARRED), answered on 2023-07-31
Subject: Infrastructure Finance Company Limited
Ministry: FINANCE
Asked by: Sangeeta Kumari Singh Deo, Sukanta Majumdar, Bhola Singh, Rajveer (Raju Bhaiya) Singh, Vinod Kumar Sonkar, Jayanta Kumar Roy

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA

## UN-STARRED QUESTION NO. 1662 ANSWERED ON 31 st  JULY, 2023 / SRAVANA 9, 1945 (SAKA)

## INFRASTRUCTURE FINANCE COMPANY LIMITED

1662. SHRIMATI SANGEETA KUMARI SINGH DEO:

DR. SUKANTA MAJUMDAR:

SHRI BHOLA SINGH:

SHRI RAJVEER SINGH (RAJU BHAIYA):

SHRI VINOD KUMAR SONKAR:

DR. JAYANTA KUMAR ROY:

Will the Minister of FINANCE be pleased to state:

- (a)  whether  the  government has been implementing  'Scheme for Financing  Viable Infrastructure Project (SIFTI)'  through  a  special  purpose  Vehicle  called India Infrastructure Finance Company Limited (IIFCL);
- (b) if so, the details thereof;
- (c) the details of performance of SIFTI in terms of the projects financed, project outlay, disbursement, sector-wise projects so far;
- (d) whether the Government has reviewed the performance of the SIFTI;
- (e) if so, the details thereof; and
- (f)    the  other  steps  being  taken  by  the  Government  regarding  improving  the implementation of SIFTI?

## ANSWER

MINISTER OF STATE IN THE MINISTRY OF FINANCE

(Dr. BHAGWAT KARAD)

- (a) & (b): India Infrastructure Finance Company Limited (IIFCL) was set up in 2006 as a Special Purpose Vehicle (SPV) under the Scheme for Financing Viable Infrastructure Projects  (SIFTI)  to  provide  long  term  finance  to  commercially  viable  infrastructure projects.

SIFTI acts as a mandate for IIFCL and inter-alia contains provisions regarding sources of funding, eligible criteria for projects and modes of funding.

(c)  As  informed  by  IIFCL,  as  on  June  30,  2023,  IIFCL's  cumulative  sanctions  and disbursements stood at Rs. 2.3 Lakh Crore and Rs. 1.1 Lakh Crore. The sector wise detail  of  projects  wherein  credit  facilities  were  sanctioned  by  IIFCL  is  enclosed  as Annexure-I.

(d)  to  (f):  SIFTI  has  been  reviewed  and  revised  from  time  to  time  to  adapt  to  the evolving  infrastructure  financing  ecosystem  of  the  country.  Some  of  the  major revisions incorporated in SIFTI to improve upon its implementation are as follows:

-  Inclusion of Harmonized Master List of Infrastructure sub-sectors
-  Addition of subordinate debt and credit enhancement as mode of funding
-  Inclusion of certain sectors in addition to Harmonized  Master  List of Infrastructure  sub-sectors  for  funding  by  subsidiary  of  IIFCL,  namely,  India Infrastructure Finance Company (UK)
-  Inclusion of sanctioning of loans based on self-appraisal and assuming role of lead lender
-  Addition of clauses related to allowing IIFCL and IIFC (UK) to convert part of their  lending  to  equity  (or  equity  like  instruments)  as  part  of  the  resolution process under Insolvency and Bankruptcy Code (IBC).

*****

Annexure-I

## Reply as referred to in part (c) of Lok Sabha Un-starred Question No. 1662 for answer on 31.7.2023 Sector wise cumulative details of projects sanctioned under SIFTI as on 30.6.2023

| Infrastructure Sector                | Number of Projects   | Project Cost (Rs. Cr)   | Gross Sanction (Rs. Cr)   | Disbursement (Rs. Cr)   |
|--------------------------------------|----------------------|-------------------------|---------------------------|-------------------------|
| Road                                 | 378                  | 4,83,350                | 70,288                    | 35,073                  |
| Power                                | 242                  | 5,62,435                | 66,240                    | 31,997                  |
| Airport                              | 11                   | 73,581                  | 8,797                     | 3,746                   |
| Port                                 | 29                   | 50,309                  | 8,244                     | 3,359                   |
| Urban Infrastructure                 | 20                   | 55,708                  | 5,323                     | 757                     |
| Railway                              | 3                    | 3,194                   | 639                       | 70                      |
| Pooled Municipal Debt Obligations    | 38                   | 8,602                   | 260                       | 151                     |
| Telecom                              | 3                    | 4,607                   | 700                       | 548                     |
| Social and Commercial Infrastructure | 2                    | 5,881                   | 1,170                     | -                       |
| Refinance                            |                      |                         | 64,897                    | 33,790                  |
| Total                                | 726                  | 12,47,667               | 2,26,558                  | 1,09,491                |

Source: IIFCL