Question : BAILOUT PACKAGE FOR IFCI



(a) whether the Government have released Rs.400 crores as Bailout package for IFCI; and

(b) if so, the details of the package and the target being fixed?

Answer given by the minister


MINISTER OF STATE FOR FINANCE (SHRI BALASAHEB VIKHE PATIL)


(a) & (b) : Government of India (GoI) has released Rs 400 crore to IFCI Ltd., on 30th October, 2001 for investment by Government in IFCI`s 20 year Convertible Debentures. IFCI has re-invested it simultaneously in GoI Securities. The above capital infusion has been made to improve the Capital Adequacy Ratio (CAR) of IFCI. While releasing the funds IFCI has been asked inter-alia to take steps to expedite cases pending with BIFR and Courts particularly with large NPAs, to undertake a study on the NPA in IFCI portfolio with a view to solve the problem through a sector-wise approach and to explore the possibility of roll over and refinancing of foreign currency and domestic lenders.