Inland Waterways Authority of India (IWAI) will raise Rs 1,000 crore in the current fiscal through issuance of bonds to part fund the expansion of country's inland waterways.
Chairman Amitabh Verma said that IWAI will raise Rs 1,000 crore from market in February and March 2017 in two tranches of Rs 500 crore each to part fund the expansion of India's inland waterways through government serviced bonds.
In addition, the IWAI is anticipating a budgetary support as well as extra budgetary allocations of about Rs 4,000 crore for the aforesaid purpose in the forthcoming Budget for the fiscal 2017-18, Verma added.
Inaugurating 'National Maritime Conclave 2017' conducted under the aegis of PHD Chamber of Commerce and Industry here today, Verma explained that IWAI has planned to roll out Rs 500 crore bonds after budget proposals for next fiscal is announced and the forthcoming monetary policy is pronounced by RBI on February 7, 2017.
The second tranche of Rs 500 crore would be raised subsequently in March, Verma said, emphasising that the bonds will be totally government serviced so that there is commitment of the government in them and subscribers have no doubts on their counter guarantees.
The IWAI has AAA ratings for issuance of these bonds from leading rating agency CRISIL.
IWAI is expecting budgetary support and extra budgetary allocations for development of waterways to the tune of Rs 4,000 crore in fiscal 2017-18, Verma said and added that he has received indications to this effect from the Shipping Ministry.
IWAI functions under the Shipping Ministry.
Giving the breakup of Rs 4,000 crore of budgetary support and extra budgetary allocations, Verma pointed out that Rs 2,500 crore could come to IWAI from the government by introducing an amendment to Central Road Fund Act latest by Monsoon Session, if not in the Budget Session.
"The amendment would make a way for the government to apportion five per cent of money out of highways and roads funds away to IWAI to enable it to raise additional resources to undertake waterways development which approximately works out to Rs 2,500 crore in fiscal 2017-18 alone," Verma said, expressing optimism that the Union Budget 2017-18 could also have a provision of Rs 1,000-1,500 crore in extra budgetary allocations.
He also informed that the IWAI is developing 111 waterways across the country, of which development for eight would be taken up in the current year and 12 each in subsequent two years. The remaining will be taken up subsequently.
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