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PTC India Financial Services Ltd (PFS), an arm of power trader PTC India Ltd, is in the process of raising up to Rs 100 crore through the issuance of infrastructure bonds.
The proposal entails raising Rs 30 crore, with an option to retain over-subscription up to an additional amount of Rs 70 crore, through issuance of secured long-term infrastructure bonds with benefits under Section 80 CCF of the Income-Tax Act, 1961.
PFS is issuing the bonds after being classified as an “Infrastructure Finance Company” by the Reserve Bank of India in August 2010. Investors are eligible to avail themselves of tax benefits depending on their tax brackets under ‘Section 80 CCF' of the Income Tax Act, 1961 for tax-saving investments, allowing for a deduction of maximum Rs 20,000 for financial year 2010-11, over and above the Rs 1 lakh deduction available under Section 80C.
PFS is offering an interest rate of 8.25 per cent for the 10-year Bond with an option for buyback after five years and 8.30 per cent a year without the buyback option.
The investment portfolio of PFS includes power exchange, wind turbine manufacturing unit, and power projects based on coal, hydro, bio-mass, wind and solar.
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