NHAI to issue Rs 3,700 cr tax saving bonds in FY09

The National Highways Authority of India (NHAI) is looking at issuing capital gains bonds worth Rs 3,700 crore in the ongoing financial year.

In a written reply to a question in Lok Sabha today, Minister of State for Shipping, Road Transport and Highways K H Muniyappa said tax saving bonds worth Rs 1,330 crore have already been issued until February 10 for the current fiscal.

The minister said NHAI issued bonds in the 2007-08 and 2006-07 fiscals worth Rs 305.18 crore and Rs 1,500 crore, respectively.

The bonds, issued by NHAI, are of value of Rs 10,000 each and have a lock-in period of three years. Investors can apply for a minimum of five bonds and a maximum of 500.

Replying to another question, the minister said that the government has allowed NHAI to increase total cost of road projects by 10 per cent and 20 per cent in respect of those formulated in 2007 and 2006, respectively.

The government has also allowed the release of entire Viability Gap Funding during the construction phase itself.