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Investors can look forward to Rs 30,000 crore of tax-free bond issue in 2011-12 from agencies such as NHAI, IRFC and HUDCO, with the Finance Minister, Mr Pranab Mukherjee, proposing such a move to fund infrastructure.
“This includes Indian Railway Finance Corporation (IRFC): Rs 10,000 crore; National Highway Authority of India (NHAI): Rs 10,000 crore; HUDCO: Rs 5,000 crore and Ports: Rs 5,000 crore,” the Finance Minister said.
PORT PROJECT FINANCING AGENCY
The Ministry of Shipping will have to work out the mechanism for issuance and distribution of Rs 5,000 crore tax-free bonds for ports as proposed in the Budget 2011-12.
“We will study and work out a process on the agency which will issue such tax-free bonds. The funds mobilised will have to be distributed across projects undertaken in ports under the aegis of the Centre as well as States,” Mr K. Mohandas, Secretary, Ministry of Shipping, told Business Line .
The bond issue could be done by an agency that the Shipping Ministry had proposed to set up. The Shipping Ministry, in its maritime agenda for 2011, had suggested setting up of an Indian Maritime Finance Corporation, which would scrutinise and fund port projects.
“It is quite desirable to float a specialised Maritime Finance Corporation with the equity of (major) ports and financial institutions to fund the Port projects,” the Shipping Ministry had stated in its maritime agenda document.
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