Life Insurance Corporation of India (LIC) is in official talks as the possible candidate for acquiring IFCI, stating that IFCI's expertise in project appraisal could come in handy for the corporation for its exposure to the infrastructure sector, reports Business Line.

The other option that the Ministry of Finance appears to be actively considering is the long-standing proposal for a merger of IFCI with IDBI.

IDBI Ltd had been expressing its unwillingness to take over IFCI since it feared the adverse impact of the huge burden of bad debts that the latter had accumulated. IDBI had also pointed out that it was already in the midst of a major restructuring exercise after the merger of IDBI Bank with it.

(http://www.myiris.com)