The three state-controlled units, JN Port, Ennore and Dredging Corporation of India have been granted permission to sell tax-free bonds to the tune of INR 3,500 crore in total for the financial year, according to people briefed about the matter. While JN Port has been allowed to make INR 2,000 crore through the bonds, Ennore Port is given INR 1,000 crore. A government official said that the decision to allow these units to raise funds was signed by the Finance Minister,Mr. P. Chidambaram on October 19. The Union Budget has INR 60,000 crore ser apart for low-cost fund raising plan to develop infrastructure in India and out of that provision, the Union has set aside INR 5,000 crore worth of tax-free bonds for the port sector. Last year, the Ministry rejected JN Port’s appeal to permit it to raise tax-free bonds justifying that the port had cash reserves to the tune of INR 3,000 crore. The JN Port would use the money raised to fund a project for deepening and widening the Mumbai harbor channel and the JN Port channel so that they could deal with big ships. Mr. L. Radhakrishnan , Chairman, JN Port, said : “ World-over, the cost of deepening the channel of ports and harbours are borne by the government. We need the cash reserves to buy the land for the next phase of our expansion”.
Wednesday, 24 October 2012
JN Port, Ennore and Dredging Corporation approved to sell tax-free bonds
The three state-controlled units, JN Port, Ennore and Dredging Corporation of India have been granted permission to sell tax-free bonds to the tune of INR 3,500 crore in total for the financial year, according to people briefed about the matter. While JN Port has been allowed to make INR 2,000 crore through the bonds, Ennore Port is given INR 1,000 crore. A government official said that the decision to allow these units to raise funds was signed by the Finance Minister,Mr. P. Chidambaram on October 19. The Union Budget has INR 60,000 crore ser apart for low-cost fund raising plan to develop infrastructure in India and out of that provision, the Union has set aside INR 5,000 crore worth of tax-free bonds for the port sector. Last year, the Ministry rejected JN Port’s appeal to permit it to raise tax-free bonds justifying that the port had cash reserves to the tune of INR 3,000 crore. The JN Port would use the money raised to fund a project for deepening and widening the Mumbai harbor channel and the JN Port channel so that they could deal with big ships. Mr. L. Radhakrishnan , Chairman, JN Port, said : “ World-over, the cost of deepening the channel of ports and harbours are borne by the government. We need the cash reserves to buy the land for the next phase of our expansion”.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment