PRIVATE FIRMS CANNOT ISSUE BONDS FOR INFRASTRUCTURE PROJECTS

According to the Union Finance Secretary, Mr. Ashok Chawla, only banks and financial institutions will be eligible to raise funds through issue of tax-free bonds for financing infrastructure projects. It does not mean private companies per se will be authorized by the Government to raise infrastructure bonds. Funds raised by banks through issuance of infrastructure bonds will be lent to both private and public entities undertaking infrastructure projects.