India: Major Ports Seek Government’s Help
According to the Business Line, three Major Ports have approached the Government for approval to raise Rs 3,500 crore through issue of tax-free bonds.
These Ports are:
1. Jawaharlal Nehru Port Trust – Rs 2,000 crore,
2. Mumbai Port – Rs 500 crore,
3. Ennore Port – Rs 1,000 crore.
Besides Major Ports, the public sector Dredging Corporation of India has also put in its request for raising Rs 500 crore by issuing tax-free bonds.
The Shipping Ministry has convened a meeting to discuss these proposals later this week, the Business Line reports.
Tax-free bonds generally enable the issuer to raise funds at a lower rate compared with normal bonds. According to tax experts, the difference in interest rate could work out to 2-2.5 percentage points.
Dredging Today Staff, August 7, 2012; Image: dredge-india