Cabinet clears hiking stake in IFCI to 51% by infusing R60 cr

Also clears proposal to enable AAI to lease land to ICG, India Navy.

Paving the way for conversion of Industrial Finance Corporation of India to become a government owned company, the Union Cabinet in its meeting on Monday approved a proposal to infuse Rs 60 crore in it.

“The Union Cabinet chaired by the Prime Minister Narendra Modi approved the infusion of Rs 60 crore in IFCI Ltd to make it a government company by way of acquisition of preference shares from existing share holders,” said an official release after the meeting.

The government currently has 47.93 per cent stake in IFCI, which is the country’s oldest financial institution. “A contribution of Rs 60 crore to the capital of the company would raise the shareholding of the government to 51 per cent,” said the release.

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IFCI was set up in 1948 as a statutory corporation under the Industrial Finance Corporation Act, 1948. The Act has since been repealed by the Industrial Finance Corporation (Transfer of Undertaking and Repeal) Act, 1993 and IFCI Ltd was registered under the Companies Act, 1956 on March 31, 1993.

Shares of the company gained 4.43 per cent on the Bombay Stock Exchange to close at 37.70 apiece on Monday. IFCI’s total paid-up capital of about Rs 1,925 crore comprised Rs 1,662 crore as equity capital and nearly Rs 264 crore as preference share capital.

Meanwhile, the Union Cabinet also cleared a proposal to enable Airports Authority of India to lease land to Indian Coast Guard (ICG) and the Indian Navy at various airports across the country.

“Owing to the illegal and terrorist activities along the Indian Coast Line, the ICG is developing various facilities along the coastal line to keep a watch with a view to stop such activities,” said the release, adding that transfer of the land to ICG would help in this.

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The Cabinet has approved leasing of land falling in five cities, leasing of land measuring 6,200 square metre to ICG at Juhu Airport, leasing of five acre of AAI land to ICG at Vizag Airport, leasing of 0.9 acre of AAI land to ICG at Tuticorin Airport, leasing of a triangular piece of AAI land measuring 7,326 square metre to ICG at Porbandar Airport and the leasing of 4.62 acre of AAI land to Indian Navy at Porbandar Airport. “Since the land is required for defence purposes and is in national interest and also has not been falling in the near future Master Plan of the airport, it can be spared for allotment to ICG,” said the release, adding that it would facilitate Indian Coast Guard and Indian Navy to establish facilities for better surveillance of the coast line.