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Port Trust to offer Rs 2,000-cr bonds

Port Trust to offer Rs 2,000-cr bonds
The country’s largest container port Jawaharlal Nehru Port Trust (JNPT) is hoping to raise Rs 2,000 crore from the low-cost tax-free bonds window in the current fiscal, a top official has said.

‘We have written to the government for raising Rs 2,000 crore by issuing the tax-free bonds during 2012-13,’ JNPT chairman L Radhakrishnan said. According to him, the port, located across the city harbour on the Eastern flank, will use Rs 1,500 crore for its impending dredging project, while the remaining will be used for its upcoming logistics special economic zone (SEZ).

Radhakrishnan added that for the port, the tax-free bond is a very lucrative fund-raising option as its gets money at around 8 to 9 per cent, while otherwise, it will have to pay upwards of 14 per cent if it raises money from outside.

In the FY13 budget, it has decided to continue with a special infrastructure development scheme, under which, designated companies can issue bonds, investments in which there is a promise to help reduce tax outgo.
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