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IIFCL Sanctions Loans Worth Over $1 Billion for Airport Infrastructure and Other Aviation Projects

Last Updated on 08th January 2024

IIFCL (India Infrastructure Finance Company Limited) has recently sanctioned loans worth over USD 1 Billion (INR 8800 Crores). IIFCL Director R. Jaishanakar stated that the loan amount has been sanctioned for various projects in the civil aviation sector including airport infrastructure. With this IIFCL’s total outlay is around USD 8.88 billion (INR 74,000 crore). An outlay is a direct cost incurred to execute a strategy or acquire an asset.

 

What is IIFCL?

IIFCL Meeting

 

India Infrastructure Finance Company Limited (IIFCL) is a government-owned financial institution that caters to the long-term financing needs of India's infrastructure sector. It is one of the most diversified public sector infrastructure lenders in terms of eligible infrastructure sub-sectors. IIFCL is also proactive in providing inputs and policy support in infrastructure project financing space to the government through various forums, with an aim to develop world-class infrastructure in India.

 

India Plans to Expand Civil Aviation Infrastructure

The Indian Government has set an ambitious target of increasing airport infrastructure for both domestic as well as international air travel. The airport infrastructure plan also coincides with the National Infrastructure Pipeline, wherein the government plans over USD 10 Billion (INR 91,000 crores) of capital expenditure for the civil aviation sector until FY25.

 

IIFCL's Conference

IIFCL organized a roundtable conference on the civil aviation sector on October 7th, 2023. The roundtable conference discussions revolved around having more investment in cutting-edge infrastructure. In addition, the deliberations discussed greater private sector involvement and the importance of the infrastructure bond market.

 

The Indian aviation industry has witnessed remarkable growth in recent years. As per various reports, passenger traffic in India is expected to increase from 350 million in 2018-2019 to 400-450 million per year by the end of 2023-2024. Therefore, enhancing the airport infrastructure is inevitable to cater to this surge.

 

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