The India Infrastructure Finance Company Limited (IIFCL) is to issue bonds worth Rs 10,000 crore as part of the fiscal stimulus to infrastructure, for which the government is expected to fast track approval for these bonds. S S Kohli IIFCL Chairman is expecting large retail participation from individual investors as these are tax-free.
The national highways and other big road projects may get big financing push as the Finance Ministry is busy working out the finer details of the Rs 10,000 crore bonds to be issued by IIFCL. However, the Finance ministry has not finalized the interest rate for the bonds, but NDTV find out from sources that the bonds will carry interest rate between seven to eight per cent and will be tax-free. Most infrastructure companies believe that more fund is needed although the government feels that this Rs 10,000 crore will be enough to refinance projects worth Rs 1 lakh crore.
A Subbarao, CFO, GMR Infrastructure, said, it is definitely a step in the right direction. May be Rs 10,000 crore is a beginning, but this is what we have been asking for and are expecting to create a dedicated refinance scheme so that the infra sector gets adequate funds. The quantam may have to be increased but this beginning is good. Meanwhile, the government has gone ahead and cleared infrastructure projects worth Rs 28,000 crore, hoping that its increased spending on infrastructure will provide the much needed stimulus to the economy.
The national highways and other big road projects may get big financing push as the Finance Ministry is busy working out the finer details of the Rs 10,000 crore bonds to be issued by IIFCL. However, the Finance ministry has not finalized the interest rate for the bonds, but NDTV find out from sources that the bonds will carry interest rate between seven to eight per cent and will be tax-free. Most infrastructure companies believe that more fund is needed although the government feels that this Rs 10,000 crore will be enough to refinance projects worth Rs 1 lakh crore.
A Subbarao, CFO, GMR Infrastructure, said, it is definitely a step in the right direction. May be Rs 10,000 crore is a beginning, but this is what we have been asking for and are expecting to create a dedicated refinance scheme so that the infra sector gets adequate funds. The quantam may have to be increased but this beginning is good. Meanwhile, the government has gone ahead and cleared infrastructure projects worth Rs 28,000 crore, hoping that its increased spending on infrastructure will provide the much needed stimulus to the economy.
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