Skip to main content

NHAI to again float Rs 10,000 Crore bonds towards the end of 2012 - 2013

Tax Saving Mutual Funds Online

Current open Infra Bond Application form

If you could not get a share of ~10,000-crore bond issue of the National Highways Authority of India (NHAI) this financial year, you will have to wait for the fourth quarter of 2012-13 for a second chance, as the highways authority plans to again hit the bond market around that time.

"The finance minister's announcement allowing us to raise ~10,000 crore through tax-free bonds is beneficial for us, as this will ensure cheap and long-term borrowings. Since we do not need the money immediately this year, we plan to launch our bonds by the fourth quarter of next financial year," J N Singh, member (finance), NHAI told Business Standard.

According to the current financial plan, the highways authority will require ~24,000 crore till the end of 2012-13. Of the total requirement, ~14,000 will come from the government in the form of cess and toll income, while the rest will come from money raised through the earlier bond issue.

NHAI had come out with a bond issue in December last. The issue was oversubscribed in the HNI and QIB category on the first day itself.

Though the highway authority proposed to issue ~5,000-crore bonds, it ended up raising ~10,000 crore with a greenshoe option as it got oversubscribed to the extent of ~25000 crore despite shaky market conditions.

Around 70 per cent of the ~10,000 crore will go in acquiring land for various projects, including expressways. The remaining will go for funding projects. The authority has also allocated funds for arbitration cases, to be soon taken to a committee. Around ~10,000 crore is estimated to be stuck in various disputes with contractors. For the second consecutive year, finance minister Pranab Mukherjee allowed NHAI to raise ~10,000 crore through tax-free fbonds. The Budget also announced to double the kitty of tax-free bonds for the infrastructure sector by increasing it to ~60,000 crore for 2012-13.

This ~60,000-crore bond window includes ~10,000 crore for IRFC, ~10,000 crore for IIFCL, ~5,000 crore for HUDCO, ~5,000 crore for National Housing Bank, ~5,000 crore for SIDBI, ~5,000 crore for ports and ~10,000 crore for the power sector. The Budget also annou-nced an increase in road award target to 8,800 km for next financial year, an increase from 7,300 km this financial year. The allocation of the road transport ministry has been enhanced by 14 per cent to ~25,360 crore in 2012-13.

Apart from tax-free bonds, NHAI raises money through short-term (three years) 54EC bonds. Any capital gains from sale of long-term capital assets, such as real estate or gold, can get tax exemption by investing in the 54-EC infrastructure bonds.

Under Roads Transport Minister C P Joshi, the current financial year has been a good year for NHAI and it awarded a record 7,300 km. For the first time ever, NHAI awarded 21 projects on a premium. The premium income from these 21 projects will come to around ~3,000 crore per year, and will increase by five per cent every year till the concession period ends.

A company offering a premium means it is committing to an annual payment to the government over a period of time, instead of seeking a grant for building a road.

A substantial increase in premium income has brought down NHAI_s borrowing requirement by half. The B K Chaturvedi committee had said the highway authority will need to raise ~191,000 crore by 2030-31, but now the requirement stands reduced by ~1 lakh crore to ~83,000 crore.

NHAI had come out with a bond issue in December that was oversubscribed on the first day.  
 
---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

 

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

 

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

 

These Application Forms can be used for buying regular mutual funds also

 

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

  1. HDFC TaxSaver
  2. ICICI Prudential Tax Plan
  3. DSP BlackRock Tax Saver Fund
  4. Birla Sun Life Tax Relief '96
  5. Reliance Tax Saver (ELSS) Fund
  6. IDFC Tax Advantage (ELSS) Fund
  7. SBI Magnum Tax Gain Scheme 1993
  8. Sundaram Tax Saver

Popular posts from this blog

Birla SunLife Manufacturing Equity Fund

The Make in India program was launched by Prime Minister Naredra Modi in September 2014 as part of a wider set of nation-building initiatives. It was devised to transform India into a global design and manufacturing hub. The primary motive of the campaign is to encourage multinational as well domestic companies to manufacture their products in India. This would create more job opportunities, bring high-quality standards and attract capital along with technological investment to bring more foreign direct investment (FDI) in the country.   Why India as the next manufacturing destination?   The rising demand in India along with the multinational's desire to diversify their production to include low-cost plants in countries other than China, can help India's manufacturing sector to grow and create millions of jobs. In the words of our Honourable Prime Minister- Mr. Narendra Modi, India offers the 3 'Ds' for business to thrive— democracy,...
Read more

Total Returns Index brings out real Equity Funds Performers

From February, equity mutual funds have to change their benchmarks to account for dividend payments. Until now, funds used price-based benchmarks alone. TRI or total return indices assume that dividend payouts are reinvested back into the index. What this does is lift the overall index returns, because dividends get compounded. For example, the Sensex TRI index will consider dividend payouts of its constituent companies while the Nifty50 TRI index will consider dividends of its constituents. Using TRI indices as benchmarks comes on the argument that an equity funds earn dividends on the stocks in its portfolio, which they use to buy more stocks. Therefore, using an index that also considers dividend reinvestment would be a more appropriate benchmark. Shrinking outperformance With a stiffer benchmark, it is obvious that the margin by which an equity fund outperforms the benchmark would shrink. Rolling one-year returns from 2013 onwards, the average margin by which largecap funds out...
Read more

Stock Review: Havells

HAVELLS India's stock performance has been muted in the past three months, in line with the weak broader market. But, given the turnaround in its overseas subsidiary and the launch of new products in its consumer durable business, the company's stock may undergo a re-rating.    Havells is India's leading consumer electrical goods company, with consolidated sales of . 5,527 crore in the past four quarters. Its wholly-owned subsidiary Sylvania, which makes lighting and fixtures, has established brands in European, Latin American and Asian markets. Sylvania repre sented nearly half of the company's consolidated revenues in the first half of FY11.    Sylvania's poor financials hit Havells' consolidated performance in FY10. But, this has changed in the cur rent fiscal. Havells has reduced fixed costs of Sylvania by exiting from unprofitable businesses and outsourcing manufacturing to low-cost locations such as India and China. In the September 2010 quarter, Sylv...
Read more

Kisan Vikas Patra - KVP

  Kisan Vikas Patra (KVP) First launched in 1988, the Kisan Vikas Patra (KVP) is one of the premier and popular saving scheme offering from the Indian Postal Department. This product has had a very chequered history- initially successful, deemed a product that could be misused and thus terminated in 2011, followed by a triumphant return to prominence and popular consumption in 2014. The salient features of KVP are as follows- The grand USP- Money invested by the applicant doubles in 100 months (8 years, 4 months). KVPs are available in the following denominations- Rs.1000, Rs.5000, Rs.10,000 and Rs.50,000. The minimum purchase value for the KVP is Rs.1000. There is no maximum limit. KVPs are available at all departmental post offices across India. These certificates can be prematurely encashed after 2 ½ years from the point of issue. KVPs can be transferred from one individual to another and from one post office to another. ----------------------------------------------------- Inve...
Read more

How to generate a UAN Online

Best SIP Funds Online   In order to make Employees' Provident Fund (EPF) accounts portable, the Employees' Provident Fund Organisation (EPFO) had launched the facility of Universal Account Number (UAN ) in 2014. Having a UAN is now mandatory if you have an EPF account and are contributing to it. So far, you got this number from your employer and every time you changed jobs, you had to furnish this number to the new employer.  However, in order to make it easier for you to get a UAN , and without your employer's intervention, the EPFO now allows you to go online and generate a UAN on your own. This facility can be used by freshers, or new employees, who are joining the workforce as well as by employees who have older EPF accounts but do not have a UAN as yet. As a new employee, you can simply generate a UAN and provide the number to your employer at the time of joining, when you need to fill up forms for your EPF contribution. As per a circula...
Read more
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now