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NHAI to raise funds through Public Issue of Tax Free, Secured, Redeemable, Non-Convertible Bonds



NHAI to raise funds through Public Issue of Tax Free, Secured, Redeemable, Non-Convertible Bonds

Issue opens today, closure on 1st March 2016 or earlier
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 500 crore with an option to retain over subscription of upto additional Rs 2800 crore, aggregating upto a total of Rs. 3300 crore.


The interest income on bonds is exempted from levy of income tax in the hands of the investors as per the notification no. 59/2015 F. No. 178/27/2015-ITA-I dated July 6, 2015 issued by the Central Board of Direct Taxes, Department of Revenue, Ministry of Finance, Government of India.

The coupon rate for Category I, Category II and Category III investors i.e. Qualified Institutional Buyers, Corporates and High Net worth Individuals will be 7.04% and 7.39% for tenures of 10 years and 15 years respectively in Series IA and series IIA. The coupon rate for Category IV investors i.e. Retail Individual Investors will be 7.29% and 7.69% for tenures of 10 years and 15 years respectively in Series IB and series IIB. The Issue opens on today, that is February 24,2016 and is scheduled to close on March 01,2016 with an option for early closure or extension as may be decided by the Board of Members or the Bond Committee.

The bonds are proposed to be listed on the BSE Limited and NSE and have been rated ‘IND AAA’ by IRRPL, ‘ CARE AAA’ by CARE, "[ICRA] AAA” by ICRA and ‘CRISIL AAA/Stable’ by CRISIL.

SBI Capital Markets Ltd, A.K. Capital Services Ltd, Edelweiss Financial Services Ltd, ICICI Securities Ltd and Axis Capital Ltd are the Lead Managers to the issue. Karvy Computer Share Private Limited is the Registrar to the Issue while SBICAP Trustee Company Limited is the Bond Trustee to the Issue.

The funds raised through this issue will be utilized for the part financing of various on-going projects under the NHDP and also various special projects and future projects to be awarded under different modes.
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Every Discom will be making profit by 2019: Shri Piyush Goyal
Shri Piyush Goyal, Minister of State (IC) for Power, Coal and New & Renewable Energy said “I am confident that before 2019, every Discom in this country will be making profit.” While speaking at The Power Focus Summit 2016, here, Shri Goyal said that as far as Discoms are concerned, my bigger thrust is on operational efficiency rather than financial profits; because I believe that we cannot burden people of India with tariff increases indiscriminately.

Giving status update of ongoing rural electrification programme , Shri Piyush Goyal informed, “The figure, as we speak, of villages that have already being electrified, as of today, is 5,542 villages, that’s one-third of the total. There are another 1,390 villages, where electrification work is done, they are under energization”. The Minister further added that the village electrification target for 2015-16 was 2,800 villages, which the Ministry has resetted to 5,800 after the Prime Minister’s announcement on Independence Day, to electrify remaining 18,452 un-electrified villages within 1000 days. Shri Goyal further stated that officials have themselves fixed their target to electrify 7,000 villages by March end. I'm sure that we would be able to achieve this target , Shri Goyal added.

Referring to the Ujwal DISCOM Assurance Yojana ( UDAY) , Shri Piyush Goyal said, “The agreements signed with the states specify the timelines and the reduction in losses to be achieved. The central government will monitor their work very religiously and those states that are sincere in serving their people will get full support of the central government, irrespective of political affiliations. I am sure more states including Kerala and Karnataka will join UDAY,”

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Cabinet approves provision of Credit of 150 Million USD to Islamic Republic of Iran for Chabahar Port Development
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its approval to the proposal of the Ministry of Shipping for provision and operationalization of credit of 150 million USD from EXIM Bank for development of Chabahar Port in Iran.

Chabahar Port lies outside the Persian Gulf in Iran and will help in expanding maritime commerce in the region. India is negotiating this project to facilitate the growing trade and investment with Iran and other countries in the region, notably Afghanistan and also to provide opportunities to Indian companies to penetrate and enhance their footprint in the region.

An MoU was signed between India and Iran on 06.05.2015 by Shri Nitin Gadkari. Minister of Shipping, Road Transport & Highways and his Iranian counterpart. As per the MoU, India is to equip and operate two berths in Chabahar Port Phase-I with capital investment of USD 85.21 million and annual revenue expenditure of USD 22.95 million on a ten year lease. Ownership of equipment will be transferred to Iranian side on completion of 10 year period or for an extended period, based on mutual agreement. The Iranian side had requested for provision of a credit of USD 150 million in accordance with the MoU. As per the MoU, operation of two berths will commence within a period of maximum 18 months after the signing of the Contract.

The two berths will be operated by the India Ports Global Private Limited, a Company promoted by the Jawaharlal Nehru Port Trust and Kandla Port Trust - two major ports working under the Ministry of Shipping.

The Union Cabinet has now authorized the Ministers of Finance, External Affairs and Shipping to approve the final contract with Iran and for resolution of any issue arising in implementation of the project.

The Union Cabinet has also authorized the Ministry of Shipping to form a Company in Iran for implementing the Chabahar Port Development Project and related activities.


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