The Union government has informed the Parliament that National Highways Authority of India (NHAI) will issue taxable Bharatmala bonds to raise Rs 10,000 crore in the current financial year (FY19), reports Business Standard (BS).
“A draft self prospectus (DSP)/offer document has been filed with the stock exchanges and SEBI to raise Bharatmala Taxable Bonds through public issue with shelf limit of Rs 10,000 crore,” said Nitin Gadkari, Union Minister of Highways, in a written reply in the Lok Sabha in the ongoing Winter session.
“The amount is being raised accordingly and till date a sum of Rs 41,170 crore has been raised by NHAI,” added the Minister. The Union budget allows NHAI to raise a sum of Rs 62,000 crore by issuing various financial instruments, including Bharatamala bonds.
These bonds are issued by NHAI, which has a highly credible ‘AAA’ rating, to fund various road infrastructure projects in the country. These bonds carry a coupon rate of 8.5 per cent.
“For retirement purposes, people invest in banks where you get 6 per cent interest on your deposits. I will give you 2.50 per cent more. I will give you 8.50 per cent interest per annum for a period of five years and the interest will be paid out monthly,” Mr Gadkari had earlier stated.
Bharatmala Pariyojana, a flagship infrastructure development programme of the NDA government, involves the development/upgradation of 34,800 km of National Highways (NHs). It focuses on optimising the efficiency of freight and passenger movement across the country by bridging critical infrastructure gaps through effective interventions.
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