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.

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