To facilitate infrastructure needs of public sector institutions the Union government has permitted 13 such institutions to raise Rs 48,000 crore via tax free bonds in 2013-14.
Of the Rs 48,000 crore, more than half of it will be grabbed by India Infrastructure Finance Company, Indian Railway Finance Corporation (Rs 10,000 crore each) and Power Finance Corporation (Rs 5,000 crore)—also asked to raise dollars by issuing quasi sovereign bonds to the tune of $4 billion (about Rs 24,000 crore). National Highway Authority of India (NHAI), Housing and Urban Development Corporation, and Rural Electrification Corporation would raise Rs 5,000 each.
NHAI had failed to issue Rs 10,000 crore of bonds it was sanctioned last year.
With this the government, for the first time, has allowed sovereign wealth funds (SWFs) in the private placement segment of these bonds, say media reports.