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IFCI seeks low-cost govt funds

Saturday, 8 March 2014 - 9:00am IST | Place: Kolkata | Agency: dna

IFCI is seeking government permission to issue tax-free bonds and also looking to tap several sources of low-cost funds like Rural Infrastructure Development Fund (RIDF).

IFCI has sought Rs 5,000 crore from the Rs 20,000 crore RIDF, managed by National Bank for Agriculture and Rural Development or NABARD.

The fund was set up in 1995-96 to provide low-cost funds to state governments and state-owned bodies for faster completion of projects relating to irrigation, soil conservation and other forms of rural infrastructure.

"We can raise SLR bonds and have also asked for permission to raise money through tax-free bonds. We have also sought funds from RIDF," IFCI chief executive and MD Malay Mukherjee said.

With Lok Sabha polls round the corner and the fiscal year coming to a close, Mukherjee doesn't expect funds to flow in this year.

"We were late in applying. So don't expect funds to flow in the current as only a few days are left in the current fiscal," he said.

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