Discuss the main points of Cabinet approval for additional capital and equity support to IIFCL.
- The Union Cabinet has approved additional capital infusion and equity support to government- owned India Infrastructure Finance Company Limited (IIFCL).
- IIFCL is a non-banking financial company which provides long-term finance to viable infrastructure projects.
- The additional equity support for the financial years 2019-20 and 2020-21 would be Rs 5,300 crore and Rs 10,000 crore respectively.
- This support will come either from budgetary support or the issuance of recapitalisation bonds. Further, the authorised capital of IIFCL is also proposed to be increased from Rs 6,000 crore to Rs 25,000 crore.
- Authorised capital is the maximum amount of shares that a company can issue as per its incorporation documents.