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03-18-2012, 09:34 AM #1
Budget 2012: Tax-free bond target for infrastructure projects at Rs 60,000 crore
Finance Minister Pranab Mukherjee on Friday proposed to double the tax-free bond target for financing infrastructure projects in the next fiscal to Rs 60,000 crore from Rs 30,000 crore.
"I propose to double it to raise Rs 60,000 crore in 2012-13," Mukherjee told Lok Sabha while presenting union budget 2012-13.
According to Mukherjee, the total sum amount of Rs 60,000 crore will include Rs 10,000 crore for National Highways Authority of India (NHAI), Rs 10,000 crore for Indian Railway Finance Corporation (IRFC), Rs 10,000 crore for India Infrastructure Finance Co. (IIFCL), Rs 5,000 crore for Housing and Urban Development Corporation (HUDCO), Rs 5,000 crore for National Housing Bank, Rs 5,000 crore for Small Industries Development Bank of India (SIDBI), Rs 5,000 crore for ports and Rs 10,000 crore for power sector.
Mukherjee further proposed adding of irrigation, terminal markets, soil testing laboratories, capital investment in fertiliser, oil and gas storage facilities- pipelines, fixed network for telecommunication and telecommunication towers in the ambit of viability gap funding (VGF) under the scheme to support to public private partnerships (PPP) infrastructure development.
"VGF in infrastructure is an important instrument in attracting private investment into the sector."
Mukherjee pointed that lack of adequate infrastructure is a major constraint on growth.
"The strategy we have followed so far is to increase investment in infrastructure through a combination of public investment and PPP," he added.
"During the 12 plan period, infrastructure investment will go up to Rs 50 lakh crore. About half of this is expected to come from private sector."