IL and FS Full Form
What is full form of IL and FS
Infrastructure Leasing & Financial Services is how IL and FS is formally referred as. It is the most significant infrastructure finance and growing company in India. Its goal is to contribute to the development and prosperity of the country by creating cutting-edge, high-standard technology and offering customers in India cutting-edge financial solutions. Public sector banks and insurance providers founded it. More than 250 entities, such as IL and FS Investment managers, IL&FS Financial Services, and IL and FS Transportation networks India Limited, are used to carry out its operations. The Dr. Syama Prasad Mookerjee Tunnel, India's longest tunnel, opened for traffic in April 2017 and is among its projects, which also comprise some of the country's major infrastructure initiatives.
History of IL and FS
In order to provide funding and loans for significant infrastructure projects, three financial institutions, notably the Central Bank of India, Housing Development Finance Corporation (HDFC), and Unit Trust of India (UTI), founded IL&FS in 1987 as a "RBI registered Core Investment Company." [9] The organization gradually opened itself up to two major foreign players, namely Mitsubishi (via Orix corporation Japan) and the Abu Dhabi Investment authority, as it became clear that it needed stronger financing. The Life Insurance Corporation of India (LIC), ORIX, and Abu Dhabi Investment Authority are currently its institutional owners, along with a few minor Indian banks. Up until 2017, State Bank of India (SBI) owned shares in the business; subsequently, it sold those shares. In its subsidiary companies, particularly IL&FS Transportation and IL&FS Infrastructure Services, a small number of foreign investors, including Greenspring Associates, continue to own shares.
In a deal including cash and equity, A2Z Group purchased the property management division of IL&FS (IL&FS Property Management & Services Ltd) in 2012. Investors were advised in April 2019 by the company's newly constituted board that it presently conducts business through 302 entities.
Service provided by IL and FS
The following list includes some of these industries and the associated companies:
Some of the Financial services provided by IL and FS are:
ITCL (IL&FS Trust Company Limited )
ORIX Auto Infrastructure Services Limited
IL&FS Financial Services Limited
Some of the Technological services provided by IL and FS are:
IL&FS Technology Ltd
Some of the Infrastructure Services provided by IL and FS are:
Noida Toll Bridge Company Limited
IL&FS Environmental Infrastructure and Services Limited
IL&FS Infrastructure Development Corporation Limited
Noteworthy projects undertaken by IL and FS
The conglomerate, which was established more than 30 years ago, finances infrastructure projects all over India. Numerous projects are being worked on by IL and FS in a variety of industries, including transportation, area development, e-government, health initiatives, cluster development, finance, power, ports, water and wastewater, urban infrastructure, environment, education, and tourism. Some of the initiatives it has supported include the Baleshwar-Kharagpur Expressway, Ranchi-Patratu Dam Road, Delhi-Noida Toll Bridge, Gujarat International Finance Tech-City, and the 9-km Chenani-Nashri tunnel, which is India's longest road tunnel.
Some of the other acknowledged projects are:
Aided in the North East's implementation of the largest CDM power project in the world.
India's first significant PPP water supply project and the largest ZLD system ever constructed.
K-Yan: A portable multimedia tool to support community learning, especially in rural India.
Along the Jammu-Srinagar highway is India's longest and safest road tunnel.
Aided in the restoration of Rajasthan's 300-year-old Jaal Mahal water palace.
The crisis which led to IL and FS Fall
The IL&FS crisis occurred when IL&FS Financial Services ran out of money and failed to pay a number of its debts. IL&FS' ongoing construction projects experienced cost overruns due to delays in land acquisition and permissions even as new infrastructure projects dried up. It failed to meet its obligations to repay bank loans (including interest), term and short-term deposits, and commercial paper. The IL&FS group has over a hundred businesses and owes Rs 94,000 crore in debt.
The government established a new board in October 2018 after concluding that the previous one had not performed its obligations. Due to significant procedural flaws at the NBFC, the Serious Fraud Investigation Office (SFIO) launched an investigation later in 2019. The Enforcement Directorate (ED) submitted its initial charge sheet in the alleged IL&FS money laundering case on August 16, 2019. These actions, however, resulted in additional losses.
Frequently Asked Questions (FAQs)
Infrastructure Leasing & Financial Services, also known as IL and FS, was founded in 1987.
Mr. C.S. Rajan is the organization's managing director at the moment, and Mr. Uday Kotak serves as IL and FS's present chairman.
IL and FS has been involved in the development of infrastructure in many different areas. These include infrastructure for the environment and society, such as water, power, ports, and highways.
The institutional investors in IL and FS are SBI, LIC, ADIA, and ORIX Corporation Japan, respectively.
Some of the initiatives it has supported include the Baleshwar-Kharagpur Expressway, Ranchi-Patratu Dam Road, Delhi-Noida Toll Bridge, Gujarat International Finance Tech-City, and the 9-km Chenani-Nashri tunnel, which is India's longest road tunnel.