S.B. Nayar was appointed as chairman and managing director (CMD) of India Infrastructure Finance Co. Ltd (IIFCL). IIFCL is a state-owned firm that funds infrastructure projects.
Nayar will have a term of three years. He presently works as head of Industrial Finance Corporation of India Limited (IFCIL), another state-owned financier.
India Infrastructure Finance Corporation Ltd (IIFCL) was incorporated in 2006 as a wholly-owned Government of India company.
It was set up as a special purpose vehicle (SPV) to provide long term finance to viable infrastructure projects.
A SPV is a legal entity formed to direct the resources for a single, well defined and narrow purpose. In India, the genesis of SPV is found in the Union Budget 2005-06.
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