CURRENT AFFAIRS

Detailed explanation-1: -The government is planning to infuse nearly Rs 2, 000 crore into state-run IFCI Ltd., according to a Bloomberg report. In an attempt to reduce the debt burden of the ailing lender, the government is likely to merge IFCI with its unit, Stock Holding Corporation of India, the report added.

Detailed explanation-2: -The infusion was done through preferential issue of equity shares, a Finance Ministry communication to the company said. The government had committed Rs 200 crore to IFCI in the Budget 2020-21.

Detailed explanation-3: -IFCI, previously Industrial Finance Corporation of India, is a development finance institution under the ownership of Ministry of Finance, Government of India.

Detailed explanation-4: -IFCI Ltd (IFCI) was set up as a Statutory Corporation (“The Industrial Finance Corporation of India”) in 1948 for providing medium and long term finance to industry.. In 1993, after repeal of the Industrial Finance Corporation Act, IFCI became a Public Limited Company, registered under the Companies Act, 1956.

Detailed explanation-5: -IFCI offers financial solutions in areas of corporate finance through Balance Sheet Funding, Loan Against Shares, Lease Rental Discounting, Promoter Funding, Long Term Working Capital requirements, Capital Expenditure and regular Maintenance Capex.