India: Major Ports Seek Government’s Help

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.

[mappress]

Dredging Today Staff, August 7, 2012; Image: dredge-india

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