The new head of Iran 's National Development Fund said it has prioritized financing national projects to help boost national production and support Iranian labor and capital as reiterated by the leader of Islamic Revolution Ayatollah Seyyed Ali Khamenei.
Mohammad Reza Farzin said the INDF is an "inter-generational" fund which has been tasked with supporting national projects based on Article 84 of the Fifth National Development Plan, the INDF Public Relations Department quoted Fars News Agency as reporting.
Farzin said the INDF supplies its fund through oil revenues, saying a minimum 20 percent of the country's revenue in the oil and gas sectors is allocated to funding national projects.
He added that 35 billion dollars of the INDF resources will be used to finance projects in the oil, gas and petrochemical industries as well as building power plant.
"Last year, the INDF allocated more than 28 billion dollars to fund different projects through agent banks," he said, adding that the INDF aims to stabilize economy and cut the dependency of government on petrodollars.
"Based on the directives of the leader of Islamic Revolution, resources of the INDF will be at the service of national production and support for Iranian labor and capital...The INDF will also prioritize business plans which reduce the impact of sanctions," he said.
Farzin added that agency agreements have been also signed with two more banks, Melli Bank and the Pasargad Bank.
The new INDF managing director further highlighted the role of cooperatives in promoting national development and economic progress, saying the cooperatives sector shares 25 percent of the country's economic growth.
Farzin said the INDF funds will be also paid to projects in which the government holds a maximum 20 percent shares.
"According to the law, the INDF resources should be paid to the private, non-governmental public and cooperatives sectors...however, if the government holds a maximum 20 percent share of a project, it will be financed by the INDF."
The INDF managing director said the Fund's revenues will exceed 50 billion dollars by the end of the current Iranian year (March 2013).
Farzin further said some 1.3 billion dollars will be set aside for buying new airplanes and renovating the country's aviation fleet.