Chennai: Prime Minister Manmohan Singh today said the government proposed to authorise India Infrastructure Finance Company to raise Rs30,000 crore by next year through tax free bonds for refinancing bank lending to eligible Public Private Partnership (PPP) projects in road and port sector.
“India Infrastructure Finance Company (IIFC) has already been authorised to raise Rs10,000 crore through tax free bonds by 31 March, 2009, for refinancing bank lending of longer maturity to eligible PPP projects in road and port sector.
“We expect to authorise raising of a further Rs30,000 crore next year to enable IIFCL to finance a total investment of Rs one lakh crore,” he said, while laying the foundation stone for India’s longest elevated corridor connecting Chennai Port and Maduravoyal junction here.
“This would also provide a much needed contra-cyclical push against the effect of the global slowdown on our country,” he added.
Singh said the government has also approved additional plan expenditure up to Rs20,000 crore in the current year mainly for critical rural infrastructure and social security schemes including for the Pradhan Mantri Gram Sadak Yojana.
“The government and the Reserve Bank have also taken several steps to reduce interest rates and increase the flow of credit for infrastructure, housing and industry,” he said, adding these measures would give a boost not only to the road sector but also to the economy as a whole.