Chennai, Sep 23 (IANS): Tamil Nadu Chief Minister J.Jayalalithaa Tuesday approved the establishment of Tamil Nadu Infrastructure Fund Management Company (TNIFMC) to manage the new infrastructure finance vehicles (IFV), the state government said.

In a statement issued here, the government said Jayalalithaa, chairing the board meeting of the Tamil Nadu Infrastructure Development Board (TNIDB) here, gave her approval for the setting up of TNIFMC.

The TNIFMC will be enabled to roll out and manage new IFVs - the Infrastructure Debt Fund (IDF), Alternative Investment Fund (AIF) and Infrastructure Investment Trust (InvIT) as per guidelines of market regulator, the Securities and Exchange Board of India.

This would be a fourth generation financial institution in the state and will be set-up in partnership with banks, insurance companies and reputed private financial institutions.

"These funds would be used to lend to/invest in public projects, PPPs (public-private-partnership projects) and private projects," the statement said.

The potential investor groups identified for IFVs are sovereign wealth funds, banks and financial institutions, multilateral/bilateral institutions, pension funds, insurance funds, impact funds, endowments/foundations, family trusts, foreign portfolio investors and others.

The board also approved the project structure for the proposed Madurai-Tuticorin Industrial corridor.

As many as 29 projects spanning the southern districts of the state namely, Madurai, Sivaganga, Virudunagar, Tuticorin, Tirunelveli, Ramanathapuram and Kanyakumari have been planned along the industrial corridor.

The total outlay envisaged for this mega project is about Rs.1,83,819 crore.

The board also approved budget of Rs.2,000 crore for Tamil Nadu Infrastructure Development Fund and Rs.200 crore for project preparatory fund (PPF) of TNIDB for fiscal 2014-15.