The Ministry of Finance intends to make Irrigation Water Resources Finance Corporation (IWRFC) a 100 per cent subsidiary of India Infrastructure Finance Company (IIFCL).
The proposal has received approval from the cabinet. The move has been made to give financial viability to the IWRFC. The corporation was set up by the government in 2008 with an initial paid up capital of Rs 100 crore.
It was formed to give long term financial assistance to water and irrigation projects, mainly in rural areas which have huge potential, but the amount contributed by the centre was too paltry to address its core aim.
Making IWRFC a 100 per cent subsidiary of IIFCL will help the latter to access greater funds and enable it to bid for bigger irrigation projects.