India's government plans to inject 53 billion rupees and 100 billion rupees into India Infrastructure Finance Co. Ltd. in fiscal 2019-2020 and 2020-2021, respectively.
The proposal was approved by the country's cabinet. The government will inject the capital through regular budgetary support and/or issuance of recapitalization bonds. The department of economic affairs will decide on the timing, terms and conditions of the capital, according to a Dec. 11 statement.
The cabinet also approved for increasing the authorized capital of India Infrastructure Finance to 250 billion rupees from 60 billion rupees. The move would boost the company's ability to finance big infrastructure projects in line with the government's target to invest 10 trillion rupees in infrastructure sector over the next five years.
As of Dec. 11, US$1 was equivalent to 70.76 Indian rupees.