The merger of two state-run financial institutions is aimed at creating a bigger financing firm for the sector.
With an aim to create a bigger financing firm for the sector, the finance ministry is looking at the possibility of merger of India Infrastructure Finance Company (IIFCL) and Industrial Finance Corporation of India (IFCI).
The proposal is said to be under the active consideration of the ministry “so that the huge deficit, which infrastructure space has, can be bridged,” PTI quoted a senior finance ministry official as saying.
“Currently, the financial institutions are not capable of financing huge infrastructure requirements as there is a mismatch between asset and liability,” the official added.
It is worth mentioning here that the Cabinet recently approved the lowering of a stake in state-owned general insurance companies to 75 per cent by listing them on the bourses.