CHENNAI, JAN 30: The Industrial Finance Corporation of India Ltd (IFCI) has decided to accept collaterals with adequate margins as security for loans sanctioned to fund Built-Operate-Transfer (BOT) road projects. The IFCI has made this decision after realising that it could not fund two road projects in Gujarat and Madhya Pradesh under its conventional framework.In an internal directive, the IFCI has stated that the collateral security could be movable or immovable assets of the company or promoters which form part of the project being financed, assets of group companies, corporate and personal guarantees and pledge of shares. This directive has been issued mainly for BOT road projects where the `concession agreement' between the government and concessionaire or developer does not enable the creation of a primary security.The two projects which triggered a change in IFCI's funding policy were the construction of a four-lane road overbridge in Gujarat and a bypass on a national highway in Madhya Pradesh.
