Pvt airport developers may be allowed to issue tax-free bonds

New Delhi: A high-level panel in the Planning Commission has recommended allowing private airport developers to issue tax-free bonds in the coming Budget, in order to help them gain access to relatively cheaper credit required to step up investments in the sector.
The panel deliberating on a long-term policy for developing airport infrastructure in the country, has proposed that the facility for raising funds through tax-free bonds, now available for public sector agencies like NHAI, Hudco, IRFC etc. should be given to airport developers also.
The proposal, if implemented, would come to the aid of not only AAI and public sector airport developers but could also benefit private companies such as GMR, GVK and L&T that are carrying out expansion and modernisation programmes of major airports in Delhi and Mumbai.
The committee in the Planning Commission also suggested a separate (more liberal) sectoral cap for airport developers to raise external commercial borrowings (ECBs).
26/12/11 Subhash Narayan/Nirbhay Kumar

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Categories: airports Dec 2011, New Dec 2011