Consider the following statements with respect to recent developments in infrastructure sector in India : 1. India Infrastructure Finance Company Limited was set up as a banking company for providing long-term loans for financing infrastructure projects. 2. 100 per cent Foreign Direct Investment under automatic route is permitted for all infrastructure projects. Which of the statements given above is/are correct ?

Both statements are incorrect. Statement 1 is false because IIFCL was established as a Government-owned Special Purpose Vehicle and registered as a Non-Banking Financial Company (NBFC), not a 'banking company' under the Banking Regulation Act. Statement 2 is false because in 2009, 100% FDI under the automatic route was not permitted for 'all' infrastructure projects; for example, sectors like telecom were capped at 74%, and certain civil aviation projects required government approval or had lower automatic caps. Therefore, neither statement is correct.