The Hindu : Karnataka / Bangalore News : Three banks to contribute to infrastructure

Online edition of India's National Newspaper
Thursday, Dec 21, 2006
ePaper

Karnataka

Karnataka - Bangalore

Three banks to contribute to infrastructure

Staff Reporter

They have signed memoranda of understanding with IIFCL

IN AGREEMENT: (From left) IIFCL chairman and managing director S.S. Kohli, Syndicate Bank chairman C.P. Swarnkar, Joint Secretary, Union Ministry of Finance, Rakesh Singh, Canara Bank chairman M.B.N. Rao and Vijaya Bank chairman Prakash P Mallya at t he signing of the memoranda of understanding in Bangalore on Wednesday. — PHOTO: K. Murali Kumar

BANGALORE: The funding of major infrastructure projects, including those for generating power, may now become easier for India Infrastructure Finance Co Ltd. (IIFCL), which was created by the Union Government in January this year. Three banks headquartered in the State — Canara Bank, Syndicate Bank and Vijaya Bank — on Wednesday signed memoranda of understanding with IIFCL for jointly financing the infrastructure sector. The memoranda will enable the banks to jointly train personnel in project appraisals and in studying the viability of projects having long gestation periods.

IIFCL chairman and managing director S.S. Kohli told presspersons that out of the borrowing limit of Rs. 10,000 crore fixed by the Union Government for the current year, Rs. 5,000 crore had been used to fund projects, some of which were under public-private partnerships. "We have also floated bonds worth Rs. 500 crore and there are no restrictions on raising funds from global bodies such as World Bank," Mr. Kohli said.

"We have approved 40 major projects that will cost close to Rs. 6,800 crore, and the three banks from Karnataka are involved in financing most of them," Mr. Kohli said. "Almost 80 per cent of the financing arranged by IIFCL has come from public sector banks."Also, the Government would continue to support projects such as the four highway corridors and private partnerships, he said.

Printer friendly page
Send this article to Friends by E-Mail

Karnataka