Government Eases SIFTI Restrictions, Enhancing Financing Flexibility for IIFCL

Government Lifts Restrictions on IIFCL, Enhancing Financing Flexibility

The Indian government has removed the Scheme for Financing Viable Infrastructure Projects (SIFTI) restrictions imposed on India Infrastructure Finance Company Ltd (IIFCL), providing greater financing flexibility and wider participation in infrastructure projects across various sectors.

SIFTI restrictions put additional limits on the operations of IIFCL, preventing the company from lending more than 20 per cent of the project cost. The removal of these restrictions last month has paved the way for IIFCL to strengthen its growth through greater financing flexibility and wider participation in infrastructure projects.

As India enters a transformative phase of infrastructure-led economic growth, IIFCL remains committed to supporting the nation's development priorities through responsible, innovative, and sustainable financing solutions. With a strong and growing balance sheet, prudent risk management framework, and growing sectoral presence, the company is well-positioned for its next phase of growth as a future-ready infrastructure financing institution.

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IIFCL was set up by the Government of India in 2006 with the main objective of channelizing long-term finance to viable infrastructure projects through the Scheme for Financing Viable Infrastructure Projects. The sectors eligible for financial assistance from IIFCL are the harmonized list of infrastructure sub-sectors as approved by the Cabinet Committee on infrastructure on March 1, 2012.

IIFCL's financial performance has been robust, with a record sanctions, continued expansion in the loan book, net worth, resilient operating performance, and significant improvement in asset quality. The company's standalone loan book expanded to Rs 81,715 crore as on March 31, 2026, registering a strong year-on-year growth of nearly 17 per cent over 2024-25.

The company has further strengthened its role in infrastructure financing by deepening its presence across infrastructure sectors, while maintaining a balanced and diversified portfolio. This approach remains closely aligned with national development priorities and emerging opportunities in India's infrastructure landscape.