IIFCL waits for RBI approval as it plans to invest Rs 4,000 cr in InvITs

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India Infrastructure Finance Company Ltd (IIFCL) plans to invest Rs 4,000 crore in Infrastructure Investment Trusts (InvITs) in the current fiscal, subject to RBI’s approval, the company’s Managing Director P R Jaishankar has said. Besides, he said the company is comfortable with a capital adequacy ratio of 31 per cent and would not require capital infusion from the government to fund business growth this fiscal.

“The company’s equity and reserves put together is about Rs 10,600 crore after the finalisation of FY’21 results and there is a potential to do additional business of Rs 50,000 crore given this kind of net worth,” he told .

He also said the company wants to raise Rs 15,000 crore through issuance of bonds from the domestic market in the current financial year.

With regard to InvITs, he said that IIFCL would be more like a financier and it makes more sense to invest at the special purpose vehicle level.

“We have requested RBI to clarify on our InvIT foray. If that clarification comes, we will be very keen to get into that segment. This will help improve our asset quality and at the same time help grow our balance sheet. We have planned about Rs 4,000 crore this year subject to approval from RBI,” he added.

The company, which is wholly-owned by the Union government, has also designed an Online Project Monitoring System (OPMS) for remote monitoring of its infrastructure projects. This is part of efforts to strengthen the monitoring and surveillance systems through digitalisation.

IIFCL is in the process of putting in place the OPMS, a first of its kind in India, for real-time project monitoring during construction phase by integrating high end solutions like drones and artificial intelligence, Jaishankar said.

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Further, he said that IIFCL is in the process of establishing an in-house research and advisory wing. This would enable it to further bolster capabilities to provide policy advocacy, feedback, remedial action, innovative products and processes to the government, regulatory bodies, project authorities and other stakeholders.