Infrastructure finance companies aim to garner Rs 7,600 cr through bond issues

NEW DELHI: Three infrastructure finance companies are aiming to garner a sum of Rs 7,600 crore through bond issues as the government will be introducing tax advantages on infrastructure bonds in the year 2011.

India Infrastructure Finance Company (IIFCL), Infrastructure Development Finance Company (IDFC) and L&T Infrastructure Finance have issued long term infrastructure bonds which will provide tax benefits under the section 80CCF of the Income Tax Act. There are 31 million tax payers in India as of now. The infrastructure companies are expecting to garner a sum of Rs 7,600 crore from these tax payers.

The government has granted permission to these infrastructure companies to offer long term tax-free bonds under Sec 80CCF of the Income Tax Act. The investors will now be able to invest Rs 20,000 more as tax free investment. However, before this the government allowed the tax payers of the country to make an investment of only Rs 10,000 as tax-free investments.