India Infra’s UK arm launching operations from April

New Delhi, March 16

The offshore subsidiary of India Infrastructure Finance Company Ltd (IIFCL) is to kick off operations in London next month. Indications are that this investment vehicle would commence operations in the first week of April.

This subsidiary would initially take a line of $250 million from the RBI for on-lending to Indian companies to import capital equipment from abroad for their infrastructure projects here. Such an arrangement would help financing of infrastructure projects including airports.

“We are awaiting Government’s approval on guarantee on bonds. It is under process. We hope the subsidiary will begin operations sometime next month. No date has yet been fixed”, Mr S.S. Kohli, Chairman & Managing Director of IIFCL, told Business Line.

Indications are that IIFCL would initially get $250 million from RBI as part of the central bank’s overall plan to provide $5 billion of forex reserves for infrastructure development. The authorised capital of the UK subsidiary has been pegged at $500 million. The initial paid-up capital has not yet been decided, official said. The regulatory approval for setting up the subsidiary has been obtained from the UK side.

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