PFC plans to raise Rs 5,300 cr from infra bonds

Power Finance Corporation plans to raise Rs 5,300 crore from infrastructure bonds that opened on February 24.

“We plan to raise Rs 5,300 crore through the public issue of infrastructure bonds between February 24 and March 22, 2011,” the PFC Director (Commercial), Mr M.K. Goel, told reporters here today.

Under the bond issue, an investor can avail up to Rs 20,000 rebate in the taxable income in the current financial year under section 80CCF of Income Tax Act, 1961, he said.

The deduction of up to Rs 20,000 was over and above the Rs one lakh deduction that an investor can avail under section 80C of Income Tax Act, Mr Goel said, adding that PFC will provide a fixed rate of interest up to 8.5 per cent on annual or cumulative basis.

The bonds offered will be in maturities of 10 years and 15 years with a buyback option after five and seven years, respectively, he said.

PFC will utilise the fund proceeds in financial various power sector-related projects.