7 PSUs Allowed to Raise Rs 40k cr via tax-free bonds

Published: 09th July 2015 06:19 AM  |   Last Updated: 09th July 2015 06:19 AM   |  A+A-

NEW DELHI: Around Rs 40,000 crore tax-free bonds is likely to hits the streets in the current fiscal year with the government allowing seven companies to raise the funds through this route.  More than half of the capital, i.e. around Rs 24,000 crore would be raised by National Highways Authority of India alone. Indian Railways Finance Corporation is permitted to raise Rs 6,000 crore, Housing and Urban Development Corporation has been allowed to raise Rs 5,000 crore and Indian Renewable Energy Development Agency, Rs 2,000 crore.  NTPC, Power Finance Corporation and Rural Electrification Corporation can issue tax-free bonds of Rs 1,000 crore each, according to a CBDT circular. The AAA-rated bonds will have a tenure of 10, 15 or 20 years and the interest rate is to be decided with reference to the rates of G-secs. Retail investors can invest up to Rs 10 lakh in such bonds. 

Stay up to date on all the latest Business news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp