India Infrastructure Finance Co., a state-run entity that extends loans at preferential rates, may use $500 million of the nation's foreign-exchange reserves next fiscal year to build roads, ports and power plants.

The agency, set up four years ago, will eventually draw up to $5 billion from the reserves, which are managed by the Reserve Bank of India and have reached $279 billion, chairman S.S. Kohli said in an interview last week in New Delhi. The holdings, the world's seventh largest, are enough to pay for nine to 11 months of imports, according to HSBC Holdings Plc.

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Posted by mopeng at March 2, 2010 12:23 AM