Life Insurance Corporation (LIC) has tightened its hold over infrastructure developers, Infrastructure Leasing & Financial Services (IL&FS), reported The Economic Times.

According to the report, LIC has appointed one of its own senior executive Hemant Bhargava as non-executive chairman of the unlisted firm considered to be one of the biggest infrastructure developers in India.

It is also added in the report that LIC may also infuse capital in to the firm that is currently facing high debts. As per the report, the board of the firm has approved a plan for an Rs 4,500-crore rights issue and liquidity support of Rs 3,500 crore.

The recent development came after the resignation of IL&FS chairman Ravi Parthasarathy from the post on health grounds. This in turn also has led to the emergence of LIC that holds 25% stake in the firm in to the fore front.