State-owned India Infrastructure Finance Company Ltd (IIFCL) today said it expects its $1 billion (about Rs 5,400 crore) infrastructure debt fund to be operational soon.
"There were some issues. We are hopeful that it would be resolved soon and I am quite sure that very shortly we may get approval of Sebi," IIFCL Chairman and Managing Director S K Goel said here.
"I hope the $1 billion IDF will get operational very soon," he said.
IIFCL decided to go for mutual fund route because it is more flexible.
Of the total fund size, $500 million are expected to be raised from the domestic market while remaining would be from the overseas market.
The country's poor infrastructure, which is seen as a major bottleneck for economic growth, requires an estimated investment of $1 trillion in the 12th Plan, beginning 2012 and ending 2017. Of this, 50 per cent is expected to come from the private sector.
Goel also said, IIFCL's wholly-owned subsidiary IIFC (UK) has recently slashed interest rates on long-term foreign currency loans for developers of infrastructure projects in India.
This will facilitate infrastructure developers to get larger amount of foreign currency loans at much cheaper rates to fund projects in India.
IIFCL had in 2008 set up the London subsidiary to provide foreign currency loans to Indian infrastructure project developers, who could avail themselves of loans to import capital equipment.