IIFCL Seeks To Expand Green Asset Funding

12 Jan 2026 CW Team

State-owned India Infrastructure Finance Corporation Limited is in discussions with the government to include aircraft, commercial electric vehicles and space infrastructure in the Harmonised Master List, a move aimed at unlocking greater funding for sustainable and future-ready assets.

The proposal is intended to help IIFCL diversify beyond traditional infrastructure sectors such as roads and power, and move into innovation-led areas including green mobility, sustainable aviation fuel, green steel and critical minerals. Inclusion in the Harmonised Master List would make these assets eligible for a wider pool of long-term and concessional financing.

Deputy Managing Director Palash Srivastava said that many of these emerging sectors require early-stage support before they can mature into viable financing opportunities. He also called for a stronger role for states and urban local bodies in infrastructure financing, noting that greater participation is essential to meet India’s long-term development goals.

Srivastava suggested the use of fiscal incentives and FRBM-friendly financial products to encourage state governments and municipal bodies to invest in infrastructure without putting undue pressure on their balance sheets. He said such measures would help broaden the funding base while supporting sustainable growth across new and evolving sectors.

Infrastructure Urban

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