BL reported that Infrastructure financing company India Infrastructure Finance Company Limited loan disbursements to infrastructure sector have more than doubled in fiscal 2008-09 to INR 3,197 crore. It was about INR 1,541 crore in 2007-08.

Official sources said over 50% of the disbursements in 2008-09 went to the power sector. In 2008-09, IIFCL’s loan disbursements to the power sector stood at about INR 1,634 crore, higher than the level of about INR 600 crore recorded in the previous fiscal.

For the road sector, the quantum of disbursal stood at INR 1,288 crore, more than double the INR 584 crore achieved in previous year. However, credit to both ports and airports declined on a YoY basis.

While loan disbursements to airports in 2008-09 stood at INR 218 crore, lower than INR 298 crore in previous year, the port sector got credit to the tune of INR 43 crore.

According to the Reserve Bank of India, the growth in outstanding credit to infrastructure sector decelerated from 43.1% in 2007-08 to 31.6% in 2008-09. Infrastructure credit growth has decelerated after October 2008, reflecting the slowdown in the economy.

In the stimulus package announced by Government last fiscal, IIFCL was allowed to raise INR 10,000 crore by way of tax free bonds for refinancing bank lending of PPP projects of about INR 25,000 crore. State owned IIFCL raised INR 10,000 crore through tax free bonds in 2 tranches in 2008-09.

(Sourced from Business Line)