Japan's Orix Corporation is looking to acquire a majority stake in Infrastructure Leasing & Financial Services (IL&FS), reported Business Standard.

Orix, which owns 23.54 percent in IL&FS, is keen on infusing fresh capital into the latter from overseas to meet its financial obligations.

“With its global reach, Orix has access to cheap and long-term capital. It can raise funds from Japan at 1-2 percent and that too for 40 years needed for infra projects. The Japanese want expeditious clearance from the Indian government for the transaction and are awaiting special audit reports by the Reserve Bank of India (RBI) on IL&FS and IL&FS Financial for its next move,” a source was quoted as saying in the report.

The source added that Orix will carry out the plan only if the upcoming special auditors report gives a clean chit to IL&FS.

According to the report, the Japanese firm is currently the second largest shareholder in IL&FS after LIC.

While no official confirmation has come from the part of Orix regarding the reports, the development could be critical for IL&FS. As per the report, IL&FS and its subsidiaries have to shell out around Rs 2000 crore soon to meet its liabilities.

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