Chennai: Starting this April, India's specialised financial institution, Infrastructure Development Finance Company (IDFC), will start funding education, tourism and healthcare projects.

Detailing the plans for the new areas, IDFC managing director and chief executive officer Nasser Munjee says: ''We will first start with education projects and then get into tourism in June and health in September this year.''

With several government schools languishing for funds, IDFC is planning to get them under public-private partnership arrangement and improve their infrastructure. According to him, the spotlight will be on municipal schools in select cities. ''We also plan to target all rural schools in one state,'' Munjee adds.

As to tourism projects, IDFC is targeting three states - Kerala, Goa and Uttranchal - for funding, as their economic model is mainly dependent on this sector.

On the other hand IDFC has opened its account in the healthcare segment by lending to Apollo Hospitals, Kolkata. The company is also looking at funding Apollo Hospital's Ahmedabad project to the tune of Rs 15 crore.

For this fiscal IDFC's disbursal and sanctions will be in the region of Rs 1,000 crore and Rs 2,000, respectively. Looking forward IDFC chief operating officer A K T Chari says: ''Next year we will be funding more road, port and captive power projects.'' According to him, the road and port sector will account for around 60 per cent of the total approvals.

Meanwhile, the falling interest rate regime has started pinching the company. IDFC is finding most of its borrowers armed with a competing quote from a bank queuing with a demand to cut its lending rates. Faced with the risk of losing business, IDFC has no other option except to accede to the request. In addition, a couple of road project promoters has approached the company for financial restructuring.

About some banks offering loans for projects appraised or funded by IDFC Munjee says: ''One should also price infrastructure risks while quoting their coupon rates as we do.'' But Munjee and Chari are not able to quantify the possible hit that IDFC would take due to this trend.

According to Munjee, the important aspect is to protect the spreads by reducing the cost of funds. The only high-cost fund IDFC has is the Resurgent India Bond (RIB) to the tune of Rs 500 crore raised at 12.5 per cent.

''Today we can borrow at 6.8 per cent and we are borrowing only for a short term. With Rs 2,100 crore as net worth we can borrow more short-term ones,'' says Chari. IDFC has raised around Rs 500 crore this fiscal.