FM ups allocation for investment in tax-free infra bonds
"There are a lot of mega highway and port sector projects that are coming up for bidding, which require huge investments. The proposed measures will definitely help the developers in achieving financial closures, attracting both overseas as well as domestic investors,” said Samir Kanabar, director–infrastructure, Ernst & Young. He added that since the proposed measures are in the nature of debt, the infrastructure developers will also be able to get funding at a relatively competitive rate as compared to bank financing.
Mukherjee said the Indian Railways Finance Corporation (IRFC) and the National Highways Authority of India Limited (NHAI) will issue tax-free bonds of Rs 10,000 crore each, while tax-free bonds worth Rs 5,000 crore each will be issued by Hudco and the port sector, respectively.
Already listed companies like IDFC, REC, PFC, L&T and IIFCL have planned to mobilise close to Rs 12,000 crore through issue
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