Dr. Amit Mitra
Hon’ble Finance Minister
Government of West Bengal
[WBIDFC Ltd is a Government of West Bengal
undertaking under the administrative control of the Finance Department]
West Bengal Infrastructure Development Finance Corporation Ltd. (WBIDFC) was incorporated on 23rd May 1997 promoted by the Government of West Bengal to cater to the growing need of infrastructure facilities in the State. The Corporation is owned by the Government of West Bengal under the administrative control of the Finance Department and the entire capital of Rs. 165.30 crore
as on 31.03.2014 has been contributed by the State Government. It is also registered as a deposit-taking NBFC with the Reserve Bank of India and categorized as a Loan company (LC).
Its Board of Directors are appointed by the State Govt. which includes, Secretaries of Finance Department, Panchayats and Rural Development Department, Power & N.E.S. Department, Urban Development Department, Water Resources Investigation & Development Department & Public Works Department and Director of Institutional Finance & Special Secretary to the Finance Dept, Govt of W.B. as the Managing Director of the Corporation.
WBIDFC is regarded as an institution of professional excellence and has provided able and timely fund support to the State Govt. for creation of infrastructure facilities for primary, secondary and tertiary sectors in West Bengal. The Corporation has coordinated with the concerned Government Agencies, district planning committees, local bodies and other agencies for infrastructure financing activities. The net worth of the Company is Rs.
830 crore as on 31.03.2014 showing a strong financial strength of the Company. In addition to the direct mobilization of resources, WBIDFC has been of considerable assistance to the Government for obtaining securitised loans (e.g. loans against govt. cess receivables).
The investors have always shown keen interest in subscribing to the bonds as and when issued by WBIDFC. Presently, the outstanding amount of funds mobilized by WBIDFC through private placement of bonds stands at Rs.
4189 Crore (approx). It may be emphasised that WBIDFC has always honoured its commitment towards prompt payment of coupons and redemption proceeds of bonds and there is no history of default and delay in this regard. Three leading Rating agencies viz. CARE, Brickwork and FITCH have been entrusted with the rating activity of our bond issues. These bonds are unconditionally and irrevocably guaranteed by the Govt. of West Bengal and some bond series are having additional support of sinking fund monitored by the Bond Trustees. All our bond issues have consistently received ‘investment grade’ ratings from the Rating Agencies.
From 2006, the Company has embarked upon its new business
model, whereby WBIDFC can consider granting term loans to
joint sector units, private sector units & Central Govt.
undertakings for the projects
located in West Bengal. In addition to the above, as a non core activity WBIDFC has also launched its maiden housing project, called ‘Sankalpa’ as developer/owner of the project. Thus, the business of WBIDFC is now threefold – to fund infrastructure projects initiated by the State Government, to lend to the corporate sector to build up the infrastructure of the State and also to develop the residential complex ‘Sankalpa’ at Rajarhat. Saddled with the current global economic recession, the Company is also considering to explore other avenues of business to improve its top as well as bottom lines. So far, the Corporation has progressed by treading on a cautious and prudent path, as a result of which not only the paid-up capital of WBIDFC has been fully protected but its net worth has also gone up to Rs.
830 crore as on 31.03.2014. As all of Company’s operations have a fund angle, our Board has approved alternative modes of raising and investing funds at the best possible market options. Doubtlessly, these initiatives entail a robust infrastructure like integrated IT system and an overhauling of the present IT platform is also on the cards.