India’s Ministry of Railways will start a 100 billion-rupee ($2.2 billion) domestic sale of tax- free bonds by September to help upgrade and expand Asia’s oldest train network.
The offering will be divided between a private placement and a later tranche for retail investors, Rajendra Kashyap, managing director of finance arm Indian Railway Finance Corp., said in a June 17 interview in New Delhi. Plans for the money include spending as much as 53 billion rupees on laying additional rail lines, 21 billion rupees for widening tracks and 8.5 billion rupees for electrification, he said.
The agency intends to raise a total of 205 billion rupees in the year ending March, including a record $750 million from overseas, as the ministry improves facilities to lure traffic from roads. About 1,300 kilometers of (808 miles) of new lines are due to be laid this year to meet rising travel and freight demand in the world’s second-fastest growing major economy.
The funds will primarily be used to buy 18,000 cars for hauling iron, steel, cement and other cargo, he said.
src-Bloomberg
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