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Inland waterways authority to issue bonds this year too

Inland Waterways Authority of India (IWAI), the implementing agency for Centre's Jal Marg Vikas Project, will issue infrastructure bonds by the second week of October to raise Rs 660 crore to meet capex needs, according to sources in the authority    

The Authority will raise bonds worth Rs 660 crore in the first or second week of October. We had already raised Rs 340 crore from an approval of Rs 1,000 crore last fiscal, the sources said 

The company was allowed to issue infrastructure bonds worth Rs 1,000 crore last year. Of this, it raised only Rs 340 crore due to lower fund requirement last year.    

The Union Cabinet approved the revalidation of permission to raise Extra Budgetary Resource (EBRs) of Rs 660 crore as Government of India Bonds by IWAI in 2017-18. It will be a 10-year government guaranteed paper but will not be a tax-free issue, the sources said    

The proceeds from the bonds will be utilised for development and maintenance of national waterways. The funds will be used exclusively for capital expenditure to improve infrastructure funding.    

The Union Cabinet in May this year had approved amendment of Central Road Fund Act, 2000, to allocate 2.5 per cent of the proceeds of CRF for development and maintenance of National Waterways and a reduction in the share provided for development of National Highways.    

An allocation of 2.5 per cent of CRF proceeds would provide approximately Rs 2,000 crore per annum.  

The World Bank had sanctioned a loan of 375 million US Dollars for Jal Marg Vikas Project (JMVP) in April, 2017.

During 2017-18, out of an estimated expenditure of Rs 1,715 crore for Jal Marg Vikas Project, the World Bank is likely to remit a loan amount of Rs 857.50 crore. Accordingly, the total requirement of funds in 2017-18 is Rs 2,412.50 crore and the bond will bridge the funding gap for the year.


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