Govt considering stand alone option for IFCI

Sources said in case the government decided to keep IFCI on a stand alone basis, it might also think of possible concessions to be given to the FI. These concessions might be in the form of further restructuring of the liabilities of the FI or may also be in the form of relaxation of other obligations for the FI.

Merger with a bank might not be a possibility, he ministry is studying the proposal as an alternative, few banks which have been approached have not expressed keenness on the issue. In fact, according to sources, banks have also proposed that the merger might put them in some spot of trouble with the present liabilities of the FI, not to speak of the amalgamation problem of the labour force and other issues.

IFCI sources pointed out that the FI has not discussed the issue of a possible merger with any bank. 8220;No merger issue was discussed in the board8221;, sources said. However, despite repeated calls IFCI CMD V P Singh could not be contacted.