NHAI to issue Rs.10,000 crore-worth tax-free bonds

The central government on Wednesday said the national highways development authority will raise up to Rs.10,000 crore through public issue of bonds.

According to Ministry of Road Transport and Highways, National Highways Authority of India (NHAI) plans to raise funds through public issue of tax free, secured, redeemable non-convertible bonds.

"NHAI plans to raise funds through public issue of tax free, secured, redeemable non-convertible bonds with face value of Rs.1,000 each for an amount of Rs.1,000 crore with an option to retain over subscription of up to additional Rs.9,000 crore, aggregating up to a total of Rs.10,000 crore," the ministry was quoted as saying in a statement.

The ministry elaborated that interest income on bonds will be exempted from levy of income tax.

"The issue opens on December 17, 2015 and is scheduled to close on December 31, 2015 with an option for early closure or extension as may be decided by the board of members," the statement said.

"The bonds are proposed to be listed on the BSE and NSE."

The ministry added that the funds raised through this issue will be utilised for the part financing of various on-going projects under the NHDP (national highways development project), various special projects and future projects to be awarded under different modes.