(LiveMint)
With bank credit drying up for large infrastructure projects, the National Democratic Alliance (NDA) government is exploring a plan to raise Rs10 trillion from retirees and provident fund beneficiaries, said transport minister Nitin Gadkari.
The plan aims to raise money in tranches of Rs10,000 crore by selling 10-year bonds at a coupon of 7.25-7.75%. Each tranche will be meant for a specific project. India plans to invest as much as Rs3.96 trillion in the current financial year to bankroll its new integrated infrastructure programme which involves building of roads, railways, waterways and airports.
Gadkari, who also holds the charge of the ministry of water resources, river development and Ganga rejuvenation, said that the government was exploring alternative mechanisms for funding large infrastructure projects. He declined to comment further, stating the scheme was still at a conceptual stage and has not been discussed with the finance ministry.
