The government has decided to pump Rs 200 crore into IFCI, the country's oldest term lending institution, through the preferential allotment route next
fiscal to shore up its capital and enhance operations, sources said.
Government of India holding in the non-banking finance company, which stood at 56.42 per cent at the end of December 2019, would increase after the capital infusion.
"The (Rs 200 crore) provision is for equity support to Industrial Finance Corporation of India (IFCI) keeping in view the business programme and capital requirement," as per the Budget documents presented in Parliament last month.
For the current fiscal as well, the government has earmarked Rs 200 crore capital infusion for IFCI, as per the Revised Estimate.