Mumbai : The country's largest container port Jawaharlal Nehru Port Trust (JNPT) is hoping to raise INR 2,000 crore from the low-cost tax-free bonds window in the current fiscal, a top official has said.
"We have written to the Government for raising INR 2,000 crore by issuing the tax-free bonds during 2012-13," JNPT Chairman Mr. L Radhakrishnan said.
According to him, the port, located across the city harbour on the Eastern flank, will use INR 1,500 crore for its impending dredging project, while the remaining will be used for its upcoming logistics special economic zone (SEZ).
Mr. Radhakrishnan added that for the port, the tax-free bond is a very lucrative fund-raising option as its gets money at around 8 to 9% , while otherwise, it will have to pay upwards of 14% if it raises money from outside.
In the Fiscal Year (FY) 13 Budget, it has decided to continue with a special infrastructure development scheme, under which, designated companies can issue bonds, investments in which there is a promise to help reduce tax outgo.
In the absence of raising money through a bond sale, the port had then decided to use money from its internal accruals for the dredging project.
For the last four months, it has been sitting with three bids from across the world and is waiting for government nod to open the bids so that the contract can be awarded.
The total investment needed for the 3,000 acre logistics SEZ is not clear yet. JNPT has tied up with the Dedicated Freight Corridor Corporation for the SEZ.
