Budget 2012: Tax free infra bonds doubled to 60,000 cr

Finance Minister Pranab Mukherji has proposed to allow tax free bonds of Rs 60,000 crore to be issued by various Government undertakings, which is double the Rs 30,000 crore assigned in the year 2011-2012. This includes Indian Railway Finance Corporation, IRFC, Rs 10,000 crore and National Highway Authority of India, NHAI, Rs 10,000 crore.

In order to give a boost to infrastructure development the Finance Minister will allow QFIs in corporate bond market.

This is what Pranab Mukherji had said in his Budget speech in February 2011.

For 2011-12, an allocation of over Rs  2,14,000 crore is being made for this sector, which is 23.3 per cent higher than current year. This amounts to 48.5 per cent of the Gross Budgetary Support to plan expenditure. In order to give a boost to infrastructure development in railways, ports, housing and highways development, I propose to allow tax free bonds of Rs 30,000 crore to be issued by various Government undertakings in the year 2011-12. This includes Indian Railway Finance Corporation Rs 10,000 crore, National Highway Authority of India Rs 10,000 crore, HUDCO Rs 5,000 crore and Ports Rs 5,000 crore. Investment in fertilizer sector is capital intensive and is considered high risk. It is proposed to include capital investment in fertiliser production as an infrastructure sub-sector.