Road projects: CAG faults IIFCL for deficiencies in lending

Road projects: CAG faults IIFCL for deficiencies in lending - The Hindu BusinessLine


February 09, 2021
Adopting best practices in lending, the state-owned infra lender has ‘a long way to go’
The Comptroller and Auditor General of India (CAG) has come down heavily on India Infrastructure Finance Company Ltd (IIFCL) for its deficiencies in lending to road projects.
The state-owned IIFCL still has a long way to go in achievement of its mission of adopting best practices and developing core competences for facilitating infrastructure development, the CAG said in a report tabled in Parliament on Tuesday.
Several deficiencies, including not giving due cognisance to the major risk of Right of Way availability to projects, led to loan of ₹1,895.50 crore to nine projects, out of 32 projects examined in audit, becoming a NPA, the report highlighted.

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