The Union Cabinet has reportedly approved the infusion of Rs 60 crore in Industrial Finance Corporation of India (IFCI) to make it a Government company by way of acquisition of preference shares from existing share holders.
The current shareholding of Government of India in IFCI after inclusion of the preference Share capital is 47.93%. Therefore, IFCI is not a Government Company under section 2(45) of the Companies Act, 2013. A contribution of Rs 60 crore to the capital of the company would raise the shareholding of the Government to 51%.
IFCI was established with intent to provide long-term finance needs of the industrial sector. It founded and developed various institutions namely ICRA for credit assessment rating, Tourism Finance Corporation of India (TFCI) for promotion of the hospitality industry, among others.
