IIFCL plans to break new ground in affordable housing fin space

In a move that might give a fillip to affordable-housing finance projects, state-owned India Infrastructure Finance Company Ltd (IIFCL) is planning to enter this real estate segment.

- HARSH KUMAR

"So far, we have not been involved in affordable housing financing. However, we aim to enter this segment soon," said a top IIFCL official who did not wish to be named.

A wholly owned Union government company established in 2006, IIFCL provides long-term financial assistance to viable infrastructure projects. Since September 2013, it has been under the regulatory provision of the Reserve Bank of India (RBI) as a registered non-deposit-taking non-banking financial company.

The official quoted above said the company was in discussions with several state governments, including Andhra Pradesh, Tamil Nadu, Manipur, Gujarat, Meghalaya, and Odisha, as well as housing and urban development departments across states.

"We already have project management units in many states," the official said, calling for concerted efforts to involve public authorities in land allocation and foster publicprivate partnerships (PPPs). "The involvement of a public-private investment structure is crucial, as we have not yet witnessed significant PPPs in affordable housing."