The special purpose vehicle (SPV) to fund infrastructure projects, to be christened India Infrastructure Finance Company (IIFC), will be set up as a wholly-owned government company under the Companies Act. As per the structure, prepared by the finance ministry, all its borrowings will be guaranteed by the Union government. This is in marked contrast to a traditional SPV which raises funds on the strength of its future receivables. IIFC, which is being set up in pursuance of the announcement made by finance minister P Chidambaram in his 2005 budget speech, will have an initial paid up capital of Rs 10 crore. The authorised capital, however, has been fixed at Rs 1,000 crore. The borrowing limit for the current fiscal has been pegged at Rs 10,000 crore.