The Narendra Modi government wants to pump in up to Rs 5,000 crores in India Infrastructure Finance Company Ltd (IIFCL) to give a fillip to its lending capabilities.

A proposal to this effect is listed for Cabinet approval on Wednesday. The proposed cash infusion aims to expand the role of IIFCL for infrastructure financing.

Currently, IIFCL finances PPP (public-private partnership) projects largely. The proposal, according to highly placed sources at North Block, is to remove these restrictions and make IIFCL a more rounded financer.

CNBC-TV18 learns that once the cabinet nod goes through, IIFCL will look to finance both public and private infrastructure projects.

The capital boost is planned at a time when the government is looking to fight a slowdown in the economy and spur declining growth. Currently, the PPP model has very few takers and the government’s rationale, therefore, is to help IIFCL diversify and grow.

First Published:Dec 11, 2019 2:11 PM IST