Cabinet permits NHAI, PFC and others to raise Rs 313 billion via bonds

The Union cabinet has approved a proposal to raise about Rs 313 billion by the National Highways Authority of India (NHAI), the Power Finance Corporation, the Rural Electrification Corporation, the Indian Renewable Energy Development Agency, the National Bank for Agriculture and Rural Development and the Inland Water Authority of India through the issuance of bonds in 2016-17 to augment infrastructure spending. Of the Rs 313 billion, the principal and the interest with respect to the extrabudgetary resources of Rs 163 billion to be raised by these institutions will be financed by the central government by making suitable budgetary provisions. The move is intended to supplement the efforts of the government to improve infrastructure spending and the revenue-capital mix of the expenditure for a more sustainable growth.