The IDFC, which has so far sanctioned Rs 1000 crore of loans for infrastructure projects, is also talking to the World Bank, insurance companies and the Union government for some ``back-stop support.'' The IDFC's kitty is made up of Rs 1,000 crore of equity capital contributed by the Centre, Indian financial institutions and development banks like the Asian Development Bank, AIG and Deutsche Bank. The IDFC resources also include Rs 650 crore of subordinated debt from the Union government.

The company, however, provides very little of direct loans to infrastructure projects and concentrates mostly on ``credit risks and liquidity support'' for bank finance. ``We are using the surplus liquidity of the banks to lend at a higher rate,'' IDFC chairman Deepak Parekh told newspersons at the international conference on``Infrastructure development'' organised by the Confederation of Indian Industry (CII).

The credit risks and liquidity supports to the banks are offered in the form of credit enhancements, guarantees and innovative products like ``take-outs'' for infrastructure development projects. The IDFC has for a start, signed a memorandum of understanding (MOU) with the SBI for Rs 300 crore of ``take-out'' financing.

The five-year commitment from IDFC will ensure ``liquidity support'' to SBI and companies availing of these assured funds will pay a 0.5 per cent fee to IDFC. Bharti Telecom has already availed of Rs 25 crore of ``take-out'' financing. The IDFC is also ``doing a take-out'' for some banks in south India, that may be funding the Videocon Power project.