The Inland Waterways Authority of India (IWAI) has raised Rs 340 crore through issuance of infrastructure bond in a bid to boost inland waterways across the country.
The funds are expected to provide a big fillip to IWAI's ambitious plan to develop National Waterways in India.
"In a landmark development for expansion of inland waterways in the country, the IWAI has raised Rs 340 crore through its maiden bond issue from the market," the Ministry of Shipping said in a statement.
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The fully-serviced Government of India Bonds were privately placed with banks and financial institutions on March 1.
The finance minister in his Budget speech of 2016-17 had announced mobilisation of extra budgetary resources through issuance of bonds to support infrastructure projects.
"To augment infrastructure spending further, the government will permit mobilisation of additional finances to the extent of Rs 31,300 crore by NHAI, PFC, REC, IREDA, NABARD and the Inland Waterways Authority through raising of bonds during 2016-17," he had said.
Accordingly, IWAI launched its maiden venture of mobilising the fully serviced bonds on the electronic bidding platform of the Bombay Stock Exchange on March 1, 2017.
The issue was oversubscribed with a total mobilisation of Rs 340 crore against the announced size of Rs 200 crore.
These 'river highways' are economical and environment friendly and are expected to contribute to correcting the existing transport modal mix that imposes logistics cost on the Indian economy, the statement said.
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