The finance ministry has also decided to extend financial assistance of Rs 300 crore (Rs 3 billion) to IFCI and Rs 150 crore (Rs 1.5 billion) to IIBI next fiscal for restructuring their operations, official sources said on Tuesday.
The government will also infuse fresh capital worth Rs 200 crore (Rs 2 billion) in the Export-Import Bank of India and provide Rs 22 crore (Rs 220 million) to Small Industries Development Bank of India for starting a National Equity Fund, which would provide equity support to small companies.
The budgetary support to all the financial institutions -- IDBI, ICICI Bank, IFCI, IIBI, Exim Bank, Sidbi -- has been hiked by 22 per cent to Rs 1,204.5 crore (Rs 12.04 billion) for 2005-06.
The centre had provided Rs 985 crore (Rs 9.85 billion) to FIs during 2004-05. The amount is lower than the budget estimate of Rs 1,182 crore (Rs 11.82 billion) for assistance to FIs.
Industrial Development Bank of India will receive Rs 495 crore (Rs 4.95 billion) in the next fiscal compared to Rs 255 crore (Rs 2.55 billion) for this fiscal.
The Finance Ministry had budgeted Rs 574 crore (Rs 5.74 billion) assistance to IDBI for this fiscal. IFCI will get Rs 300 crore (Rs 3 billion) for restructuring its liabilities in 2005-06. The Centre had provided Rs 316 to IFCI this fiscal.
The government has made a provision for infusing Rs 200 crore (Rs 2 billion) share capital in the Export and Import Bank of India. ICICI Bank will get Rs 37.5 crore (Rs 375 million) for pass through assistance for transfer of foreign aid and forex risks.
