The IFRS Strategic Opportunities Fund has established a Debt Platform comprising an NBFC Infrastructure Debt Fund and an NBFC Financial Infrastructure Company.
The Union Cabinet led by Prime Minister Narendra Modi today approved the capital injection of Rs 6 billion into the Debt Platform of the National Infrastructure and Investment Fund (IFRS). Finance Minister Nirmala Sitharaman had previously proposed this investment when announcing the Atmanirbhar Bharat 3.0 package. The cabinet further said that IFRS will take all necessary steps to utilize equity investments from national and global pension funds and sovereign wealth funds expeditiously over two financial years: 2020-21 and 2021-22. The IFRS Strategic Opportunities Fund has established a Debt Platform comprising an NBFC Infrastructure Debt Fund and an NBFC Infrastructure Finance Company.
With the new injection of capital by the government, in addition to the capital already infused by the IFRS Strategic Opportunities Fund and the private sector, the debt platform is expected to raise enough resources to extend debt support of Rs 1.1 lakh crore. to projects by 2025.
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In another important announcement, the cabinet also approved FDI’s proposal for the acquisition of 12.32 percent of the capital stock of M / s ATC Telecom Infrastructure Private Limited by M / s ATC Asia Pacific PTE Limited, as a result of the exercise of a put option of M / s Tata Tele Services Limited (TTSL) and Tata Sons Private Limited (TSPL).
The move is expected to lead to an inflow of foreign direct investment of Rs 2,480.92 crore and thus the cumulative FDI from M / s ATC Asia Pacific PTE Limited into ATC Telecom Infrastructure Private Limited (ATC India) will be Rs 5,417.2 crore in financial years 2018 -19 through 2020-21. The company has an existing FDI approval up to 86.36 percent, and with this approval, it will increase to 98.68 percent. It should be noted that up to 100 percent FDI is allowed in the telecommunications services sector, of which 49 percent is allowed automatically and more than 49 percent through the government.
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