NHAI raises Rs 10,000 crore from EPFO; LIC to invest Rs 8,500 crore
National Highways Authority of India has raised Rs 10,000 crore from retirement fund body EPFO's bonds so far this fiscal, while LIC has in-principle has agreed to subscribe to its taxable bonds worth up to Rs 8,500 crore till March-end, Parliament was informed today.
NHAI in the current fiscal has raised Rs 10,000 crore through taxable bonds of Employees Provident Fund Organisation (EPFO), data presented by Minister of State for Road Transport and Highways P Radhakrishnan in Lok Sabha showed.
"Life Insurance Corporation (LIC) has agreed in principle to subscribe to NHAI taxable bonds to the tune of Rs 25,000 crore subject to not more than Rs 8,500 crore in one financial year. The terms and conditions are under negotiations," Radhakrishnan said.
It has also raised additional Rs 11,929 crore through investors availing capital gains exemption (outstanding as on October 31, 2016), the data showed.
Section 54 EC of Income Tax Act, 1961 provides an option to save tax on capital gain arising from transfer of long term capital asset subject to certain conditions.
Besides,, the government also raised Rs 10,000 crore, Rs 5,000 crore and Rs 19,000 crore through tax-free bonds during 2011-12, 2013-14 and 2015-16, respectively, the data showed.
"The estimated total investment required by NHAI for execution of different highway projects is Rs 71,911 crore (Budget Estimate 2016-17)," Radhakarishnan said.
Earlier this week, Minister of State for Road Transport and Highways Mansukh L Mandavia told Rajya Sabha that to finance its various projects, NHAI plans to raise Rs 55,000 crore in the current fiscal.
It will raise Rs 20,000 crore through EPFO, Rs 8,500 crore through LIC, Rs 5,000 crore each through Masala and 54-EC bonds and Rs 16,500 crore from the market, he had said.